Espreso. Global

European ammunition manufacturer seeks investment for expansion

31 October, 2023 Tuesday
15:38

European defense companies face limitations in expanding artillery ammunition production and require additional funding

Defense Express writes about this.

Amid growing concerns about Europe's ammunition shortage, Norwegian giant Nammo is seeking external investment. 

Currently, European NATO countries require around 13 million artillery shells, but the region can only produce a fraction of this demand annually, with estimates standing at less than 500,000 shells, the article notes. 

This shortage is largely attributed to decades of peace and limited defense orders. Countries like Norway and Sweden haven't placed significant artillery ammunition orders for years. 

This situation has forced European armies to replenish their reserves, along with fulfilling contracts for countries like Ukraine.

Nammo paints a gloomy picture of the ammunition industry's future. It believes that even in the short term, European defense industries will struggle to meet more than 5-10% of the overall demand. 

The company points to a severe lack of production capacity and calls for increased support, according to the article. 

To illustrate their point, Nammo cites their recent investment of 75 million Norwegian kroner (approximately USD 6.725 million), which represents just a fraction of the estimated 70 billion Norwegian kroner (around USD 6.277 billion) needed to boost artillery ammunition production. The company occupies a quarter of the European artillery ammunition market, and they argue that increased investment could have broader positive impacts beyond military capacity.

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