Nammo Lapua Oy and the Finnish Defence Forces have signed a significant procurement contract regarding both small arms ammunition and large caliber ammunition product development and deliveries for the years 2003-2008.
The value of the contract is appr. 44 MEUR, in addition to which the contract also includes substantial options for additional deliveries.The contract now signed is a new working practice and basis for long-term partnership established between the customer and the supplier. The purpose is to better integrate the functioning of customer´s systems in the future, both as regards to the life cycle management of the system, and the products.
The procurement includes a considerable amount of product development of special products, which will shape into actual material manufacturing and deliveries in the end of the contract period. The product development itself will increase the cooperation between the customer and the supplier, as well as the supplier´s knowledge regarding the future system requirements.
The contract strengthens Nammo´s possibilities to deliver state-of-the-art small caliber speciality ammunition, as well as develop the future ammunition systems regarding large caliber ammunition, and creates a basis for utilizing the overall know-how of the Nammo Group, including the Group´s international partner and customer networks internationally. The contract enables the parties to develop the industry-customer relationship towards a more productive industrial basis, moving away from previous sourcing procedures, in which the activities were based on annual governmental planning. The work to be done within this contract lays a solid basis also for the next possible contract period.The contract is remarkable as regards to its length, giving Nammo Lapua Oy the opportunity to develop the operations on a more sustainable basis e.g. financially and qualitatively, improving the operational condititions both in international business prospects and industrial operations in Finland.
Nammo Lapua Oy
Key Accound Manager, FDF
Tel: +358 6 431 0400
Mobile:+358 500 864 485