Arms company Nammo will receive 1 billion kroner ($95 million) from the Norwegian government in an effort to boost its production.
Nammo will use the funding largely on its 155mm artillery ammunition, a NATO-standard caliber recently utilized by Ukraine in the ongoing Russo-Ukrainian war.
The money is part of Oslo’s recently announced 2-billion kroner ($190 million) budget to address the war’s impact on ammunition production in the region.
“The war in Ukraine has created a situation where there is a need for large quantities of ammunition. The government is therefore contributing with powerful measures so that the Norwegian defense industry can produce more,” the government’s official statement read.
“Increasing capacity in the defense industry is important, both for Ukraine, but also to safeguard our own security,” Defense Minister Bjørn Arild Gram added.
Nammo’s Regional Impact
Aside from Norway, Sweden has also tapped Nammo to boost its arms production.
Earlier this year, the two signed a deal to enhance the security of 155mm artillery ammunition supply chains. The move is in part due to the EU’s Act in Support of Ammunition Production initiative.
Previously, the company also became its sole supplier of 12.7mm ammo in a 120-million kroner ($11.6 million) deal.
The War’s Impact
Various countries across Europe have boosted arms production in response to the shortage caused by the war in Ukraine.
Recently, Estonia announced its plans to build an industrial complex that will increase the local production of small-, medium-, and large-caliber ammunition.
Although no exact location for the complex has been announced yet, work is expected to begin in the middle of 2026.