EU financial support for increased ammunition production in Sweden
Published
The European Commission has decided to provide financial support to industrial projects aimed at increasing ammunition production capacity. The Swedish Government has decided to co-finance one of the projects, provided that the Commission granted support. This project, run by the Nammo Sweden AB company, could eventually triple the capacity for filling artillery shells in the coming years.
The European Commission has granted Nammo Sweden AB approximately EUR 12.2 million in support under the Act in Support for Ammunition Production (ASAP). The aim with the project is to increase filling capacity, which could triple artillery shell production at the Karlskoga company in the coming years.
The Commission’s grant decision means that the Swedish state will co-finance the Nammo Sweden AB project, providing approximately EUR 14 million. The remaining part is financed by Nammo Sweden AB. In addition, the Defence Materiel Administration has placed an order for 155 mm artillery ammunition valued at approximately EUR 12,4 million.
“Expanding ammunition production in Europe and Sweden is of crucial importance for the defence capabilities of Sweden, Europe and Ukraine. Within a few years, the European production support and Swedish co-financing of Nammo Sweden’s project could triple the production of 155 mm grenades, which are in demand by Ukraine,” says Minister for Defence Pål Jonson.
This initiative is the third track in a comprehensive effort to increase the production of artillery ammunition and enable continued support to Ukraine. The work is being carried out within the framework of the Nordic Defence Cooperation (NORDEFCO) and led by the Defence Materiel Administration. The Nordic countries have already signed a cooperation agreement and placed orders to enable donations of ammunition to Ukraine.
The following projects have been granted support by the Commission:
- Nammo Sweden: around EUR 12.2 million in contributions, totalling some EUR 27 million.
- Eurenco Bofors: around EUR 6.9 million in contributions, totalling some EUR 34.3 million.
- Nammo Raufoss: EUR 10 million, totalling EUR 32.2 million.
- Nammo Lapua Oy: EUR 22.5 million, totalling EUR 51.4 million.
Press contact
Press Secretary to Minister for Defence Pål Jonson
Phone (switchboard) +46 8 405 10 00
Mobile +46 76 126 69 22
email to Johan Hjelmstrand
Facts about ASAP
On 3 May 2023, the European Commission put forward a proposal for a regulation to the European Parliament and the Council on support for ammunition production. The proposed regulation is based on the three-track approach adopted by the Council on 20 March 2023, in which the Council agreed to deliver ground-to-ground ammunition, artillery ammunition and missiles to Ukraine and called on Member States to jointly procure ammunition and missiles to refill their stocks while allowing continued support to Ukraine.
According to the Commission, replenishment of increasingly depleted stocks and support to Ukraine can only be effective if the European Union’s supply side is also able to deliver. The Council therefore instructed the Commission to present concrete proposals to urgently support the ramping-up of the European defence industry, through such means as addressing shortcomings in production capacity and promoting investment, including by mobilising the EU budget where appropriate.
The act came into force in summer 2023, following negotiations during the Swedish Presidency of the Council of the EU in 2023.
X