DALO presents first steps ahead for ammunition production in Denmark

Source: Danish Ministry of Defence Acquisition and Logistics Organisation (DALO)

As announced on 7 October 2023, the Danish Ministry of Defence has decided to procure factory facilities at Elling in the northern part of Jutland. The aim is to explore available options for establishing a production of ammunition on Danish soil.

 

The Danish Ministry of Defence Acquisition and Logistics Organisation (DALO) initiates the first steps in this process by launching a market survey. The Request For Information (RFI) has been issued in three parts to better reach relevant market interest:

  • RFI 1 – Establishing a filling facility or other production facility for large caliber ammunition in Denmark addressing bottle necks in production, Ammunition Storage and Procurement Framework Agreement.
  • RFI 2 – Establishing production and storage of small caliber ammunition in Denmark.
  • RFI 3 – Establishing an ammunition stock and management enterprise in Denmark.

 

 

RFI 1 – Establishing a filling facility or other production facility for large caliber ammunition in Denmark addressing bottle necks in production, Ammunition Storage and Procurement Framework Agreement

Due to the war in Ukraine and the situation across the market, DALO assess that there is an urgent need for large caliber ammunition, especially 155 mm artillery ammunition and 120 mm mortar ammunition. In particular, for these types of ammunition there is a severe lack of production capacity in the current market.

Due to the extensive defence cooperation between the Nordic countries, for defence strategic and security of supply reasons in a Nordic context, the Danish Defence has primary interest in targeting existing manufacturers of large caliber ammunition within the Nordic countries, or secondarily such other existing manufacturers offering the best security of supply for Denmark. The manufacturer shall establish and operate a filling facility or other production facility for large caliber ammunition at “Krudten” addressing bottlenecks in production or, as appropriate, elsewhere in Denmark. The RFI also includes an Ammunition Storage Agreement and a Procurement Framework Agreement for such ammunition.

 

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RFI 2 – Establishing production and storage of small caliber ammunition in Denmark

RFI 2 concerns market interest in establishing and operating a production facility for small caliber ammunition at “Krudten” or, as appropriate, elsewhere in Denmark.

For this production, for reasons of national security of supply and previous experience, the Danish Defence requires a Danish manufacturer of small caliber ammunition, potentially teaming up with a strategic partner with such production. The RFI also includes an Ammunition Storage Agreement for such ammunition.

 

 

RFI 3 – Establishing an ammunition stock and management enterprise in Denmark

With RFI 3 DALO wants to investigate the market interest in stock inventory management and stock management agreements regarding various types of ammunition. DALO wishes to engage in dialogue regarding the construction of a viable business case, which primary focus will be to ensure security of supply for the most critical munitions for DALO and a model for timely access to required levels of supply within selected and relevant types of ammunition.

 

 

Smaller companies are encouraged to join forces

DALO encourages small/medium sized, niche-business companies to seek partnerships across the industry and combine their skills in order to present relevant solutions.

The security situation in Europe evolves continuously. The same goes for DALO’s and other agencies’ requirements for security of supply for ammunition. We therefore encourage the industry to stay informed, seek partnerships and remain adaptable to change.

 

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Info meetings in the pipeline

Planning for the next steps regarding establishing a production capacity at the facilities in Elling has commenced by RFI 1 and RFI 2. As part of the market survey DALO intends to conduct information and dialogue meetings concerning RFI 1 and RFI 2. The announcement of these meetings and other initiatives can be found as news on fmi.dk as they are planned, just as they will be published on the DALO (FMI) LinkedIn.

 

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