The war in Ukraine has led to Europe arming itself, and the demand for weapons and ammunition has increased sharply. But the industry is having difficulty keeping up.
In September, Nammo at Raufoss asked for help from the public to be able to increase both production and storage capacity, and in that way meet the increased demand.
On Friday, the government announced that it has entered into an agreement with the manufacturer for purchases worth up to NOK 2.6 billion. The matter must be presented to the Storting.
– We believe that this is a good solution, which means that we can continue to provide support to Ukraine, said Defense Minister Bjørn Arild Gram (Sp) at the press conference.
He believes the contract will be able to help strengthen preparedness in Norway. If the case goes through in the Storting, Nammo can increase production as early as 2023.
The M72 hand-held anti-tank rocket is among the weapons Nammo produces that are particularly sought after.
Photo: Anette Ask / Defense / NTB
– Important contract
Finance Minister Trygve Slagsvold Vedum (Sp) says this is an important contract to ensure the security of Norway.
– Through this heavy investment, we are building more knowledge. This is a big deal for the government. It was important to have progress, and that we provide the framework needed for Nammo to develop, he said.
He promised that the Armed Forces will be prioritized going forward.
Parliamentary leader of the Labor Party in the Storting, Rigmor Aasrud, says the contract will be important for both Norway and the local business community.
– This is a happy day. I am confident that we will get this through the Storting in a good way.
Biggest contract
CEO of Nammo, Morten Brantzæg, says the billion dollar contract will be the biggest the company has ever had.
– We are very satisfied that the government will obtain this ammunition from Nammo. We will deliver as quickly as we can.
The contract means that the company can increase production capacity quickly, and is important for the future operations of the factory.
– This contract gives us the foresight to invest. This will also provide additional jobs at Raufoss.
Nammo is owned 50 percent by the Norwegian state and 50 percent by Finnish Patria, which in turn is owned 50.1 percent by the Finnish state and 49.9 percent by Norwegian Kongsberg Gruppa.
The opposition positive
The government is dependent on support from the Storting in order to get approval for the multibillion-dollar agreement. Høgre’s spokesperson for defense policy, Hårek Elvenes, is positive, and thinks it was about time that the agreement was reached.
– There is a great need to increase stocks of ammunition. NATO and Norway need more ammunition to strengthen their operational capability. The donations to Ukraine have eaten away at the ammunition stocks in NATO, he writes in an e-mail to NRK.
Venstre leader Guri Melby is also happy about the new agreement, and believes it is good news for both preparedness in Norway and for Ukraine’s ability to protect itself.
– We will continue to support Ukraine at the same time as we strengthen our own defense and NATO’s collective strength, she wrote in an e-mail.
