– A significant boost, stated both Minister of Defense Bjørn Arild Gram (Sp) and CEO Morten Brandtzæg of Nammo when they presented the news together in Washington on Tuesday.
High on the NATO agenda
Strengthening the defense industry is high on the agenda at the NATO summit. On Tuesday, the NATO countries will enter into a defense industrial commitment for the first time.
In the EU too, the discussion regarding how to speed up the defense industry is ongoing.
The agreement between Norway and Nammo can be seen as a model for such an obligation, says Foreign Minister Espen Barth Eide (Ap) to NTB.
He believes other countries will follow in Norway’s footsteps.
– I think more people will realize that government capital is needed to build up production capacity in the defense industry. Although there are now more long-term contracts, it is very expensive to overcome the problem, says Eide.
– So the fact that we are now entering into a public-private partnership on production support is important.
The Nammo investment is to be taken from the funds in the Nansen package, where NOK 15 billion a year has been set aside in Ukraine support for five years.
New production line
The purpose is for Nammo to be able to invest in a new production line, so that they can produce ten times as many of the most modern artillery shells in the defense sector as they do today.
But the figures for today’s production are considered sensitive information.
– We do not want to quantify the exact number, for obvious reasons, says CEO Morten Brandtzæg in Nammo to NTB.
At the same time, the Nammo boss comes up with some historical figures: Before the war, they produced around 7,000 artillery shells a year – which is equivalent to around one day’s consumption in Ukraine.
Will take up to two years
According to Brantzæg, it will take between one and a half and two years before everything is in place. At the same time, much of the groundwork has already been done.
– This is groundbreaking work. It is unusual that you have to invest so much in such a short time, and then a joint push between the authorities and industry is needed. We have now achieved that, and we greatly appreciate that, he says.
In addition, Nammo will be able to double its production capacity for other artillery ammunition and rocket engines. Communications director Fredrik Tangeraas emphasizes that the production of missiles in particular lags far behind in Europe today.
Mostly to Norway
– It takes some time, but we are working in high gear to make arrangements, says Gram to NTB.
The value of the agreement that has now been concluded is in excess of NOK one billion, and Nammo has committed to maintaining production capacity for at least 15 years.
Ukraine has a desperate need for such artillery shells, but Brandtzæg emphasizes that this will primarily involve a significant increase in the deliveries of shells to Norway. At the same time, Nammo also has a number of contracts with other countries.
Thick order books
The CEO also emphasizes that this means around 700 new jobs for Raufoss, in addition to strengthening the industrial base in NATO.
The order books for Nammo and other arms manufacturers have become significantly thicker in recent years. Even with the new production line, Brandtzæg doesn’t think Nammo is up to date anytime soon.
– I think that will take many years. That order intake has not stopped, it is rising all the time. It will take many years before we are above the current demand, says Brandtzæg to the journalists present.
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2024-07-09 13:22:52
