“The war in Ukraine has major implications for the industry and led to a sharp increase in demand for defense products such as ammunition. As a result Nammo needs to ramp up investments and increase its industrial capacity to meet this new reality,” says Nammo CEO Morten Brandtzæg.
The company has decided to move forward with a 260 million NOK (26 million USD) investment in new production machinery. Buying machinery is necessary both to modernize existing 155mm artillery production lines, as well as improving capacity.
In 2022, the company already made record investments of around 1 billion NOK (100 million USD). A new primer factory (Finland), major upgrades of the production lines for shoulder fired weapons (USA), as well as other large caliber production improvements (USA) make up the majority of this sum.
This latest investment comes in addition to the aforementioned 2022 investments. Mr. Brandtzæg says The recent Norway artillery deal was important for the investment decision.
“When we receive major orders like this, we get both funding and predictability – two important factors when making investment decisions”, says Brandtzæg.