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European Countries Investing in Ammunition Production Amidst Russia-Ukraine Conflict

The Finnish state spits in NOK 280 million to make more artillery ammunition. Production has also doubled in Sweden. But Nammo in Norway gets a fraction of what they think is necessary.

Finland has one of Europe’s largest artillery forces. Here from an exercise in Northern Finland in May this year. Photo: Janis Laizans, Reuters/NTB

Sea view

Published: 23/12/2023 22:05

If Putin’s Russia were to start a new ground war now, there would be hardly any ammunition left for the defense of Western Europe. Donations to Ukraine have almost emptied many countries’ stocks – and they have not been replenished.

In Norway, too, there is murmuring in defense circles.

Norway’s major producer of ammunition, Nammo at Raufoss, has given clear signals about the major problems the industry faces. In a consultation statement, the company writes:

“We are in the most demanding situation in our history. (…) The consequences of underinvestment can have major consequences in terms of preparedness”.

Finland doubles again

Finland announced earlier this month a new major investment to increase the production of ammunition. With government investments of NOK 280 million and new long-term contracts, production is to be doubled within a few years.

And it is not the first time the Finns have increased production after the Ukraine crisis. Finland’s defense minister also points to large orders as an important tool.

This will increase production capacity significantly.

– It enables long-term support for Ukraine right up to the 2030s, says Antti Häkkänen in one press release.

Sweden is also betting big.

– Norway should double

Sweden doubled its production of ammunition even before the outbreak of the Ukraine war in 2022. And earlier this year, the large group announced a new, sharp increase.

– So both Finland and Sweden are doubling – and well so, says Håkon Lunde Saxi to Aftenposten. He is an associate professor at Forsvarets høgskole.

– I believe that Norway should also double the production of artillery ammunition. It is still not enough to cover Ukraine’s, Europe’s and own needs. But we would at least be somewhat closer to the goal, says Saxi.

He writes in a recent article in DN that the NOK 75 million in investment funds set aside for 2024 is “only a fraction of the need needed if the production of ammunition is to be increased significantly”.

Finland is in many ways the different country in NATO.

– They never gave up their defense concept after the Cold War. They retained the mobilization defence, and today can field 285,000 soldiers. The Norwegian one is 70,000, most of which are HVHVThe Home Guard (HV) is a national, nationwide emergency and response force consisting of 40,500 soldiers spread over 11 HV districts. Source: The Norwegian Armed Forces. They never put down their stocks of strategic materials, food stocks and other things. At the same time, Finland has one of Europe’s largest artillery forces. And then they have prioritized more production and storage for artillery ammunition than us, says Saxi.

Håkon Lunde Saxi

Associate professor at the Norwegian Defense Academy

Asking for 850 million – getting 75

Ammunition producer NammoNammoInternational Norwegian/Finnish group within the defense industry with headquarters at Raufoss. Nammo makes e.g. ammunition, rocket engines and aerospace products. 2,200 employees, of which 900 in Norway. has an investment need of NOK 850 million in the short term. This is to secure a new production line at Raufoss. But there is a long way to go. The 2024 budget from the government contains 75 million in such grants to Nammo.

Several opposition parties in the Storting got higher. The Liberals proposed 1.1 billion, the Progressive Party 750 million and the Conservatives 400 million.

Høyre’s Ine Eriksen Søreide is surprised that Norway apparently still sees the production of ammunition as an industrial policy issue. She is head of the Storting’s foreign affairs and defense committee.

– This is actually a question of preparedness for ourselves, our allies and Ukraine. Nammo is one of four major ammunition manufacturers in Europe. This means that our allies and Ukraine expect Norway to be able to deliver, especially in the extremely demanding security policy situation we are in, says Søreide to Aftenposten.

Ine Eriksen Søreide (h)

Head of the Storting’s Foreign Affairs and Defense Committee

Right: We have to think completely new

She believes it is positive that the government has entered into long-term ammunition contracts with Nammo – even if they are not quite on target yet. And she supports Norwegian participation in ASAP – that is, the EU’s program to increase the pace of deliveries of ammunition and missiles – both to Ukraine and the participating countries.

But she believes we are lagging behind in how we view the Norwegian defense industry, and points to Finland.

– We have to think completely new about this.

– I believe that we need to rise to a level where the production capacity is generally higher. It is easier to take it down for periods than to build it up. Something more is required than just having an ownership. It must give us increased preparedness, says Eriksen Søreide.

2023-12-23 21:05:20
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