Norway’s ministers of defense and finance visited the corporate HQ at Raufoss today. They jointly announced a 2.6 billion NOK (about 260 million USD) deal where Norway buys artillery ammunition. The details are still subject to contract negotations and parliamentary process. If approved, it is set to be the largest ammunition deal in Nammo history.
The contract covers the purchase of a significant but undisclosed number of 155mm IM HE-ER shells.
A deal of this magnitude will necessarily bring about significant investments. Raufoss will likely see new buildings being set up, machinery and production hardware being bought along with raw materials, as well as a number of new employees.
The war in Ukraine and a vastly expanded need for ammunition is an important part of the background picture. The Norwegian ammunition will improve army capabilities. It will also lead to significant investments in production capacity; something that is sorely needed also in a wider NATO context.
“I am very happy to that the Norwegian government has decided to buy ammunition for 2.6 billion NOK. This is a very important contract, and we will see a lot of extra activity here at Raufoss in the coming years as a consequence. I am proud of the work all our employees do in all of the 11 countries where we have a presence. The war in Ukraine is a dark and terrible background, but we do an important and necessary job: to get the armed forces what they need and improve their capabilities”, says Nammo CEO Morten Brandtzæg.