“With financing from the Acceleration Fund, we have entered into a contract with Nammo, and we can now begin construction and production of ammunition in Denmark,” said Defence Minister Troels Lund Poulsen. He highlighted the importance of replenishing ammunition stocks in response to a heightened security policy environment.
In February 2025, Poulsen and the Defence Agreement parties selected Nammo AS to lead the restoration of Denmark’s ammunition production. By June, the Ministry of Defence’s Materiel and Procurement Agency (FMI) had concluded negotiations on the contract’s terms, including production launch obligations.
“When Nammo now establishes ammunition production in Elling, it is about supply security, Nordic cooperation, and a long-term perspective,” said Nammo AS CEO Morten Brandtzæg. “Nammo is also investing significantly in this long-term venture, which will create jobs and economic activity.”
The Ammunition Factory in Elling will manufacture 155 mm and 120 mm shells as well as 5.56 mm and 7.62 mm calibre cartridges. Production is expected to commence in the second half of 2027.
“In cooperation with a highly competent company, Denmark is now taking a major step forward in terms of defence and self-sufficiency,” stated Minister for Industry, Business and Financial Affairs Morten Bødskov. “This benefits both the Armed Forces and growth and job creation in the domestic defence industry.”
FMI Chief, Lieutenant General Per Pugholm Olsen, noted the strategic importance of the initiative, stating: “An ammunition factory in Denmark and state co-ownership of Nammo Denmark A/S is crucial for the overall mobilisation of industry, which is a focus both in Denmark and other Nordic countries.”
Due to safety requirements, a larger protective zone around the factory will be necessary, potentially involving compulsory purchase of nearby properties if voluntary agreements cannot be reached. Ahead of the signing, the Defence Minister hosted a public meeting to address local concerns about the factory’s development.
“It is essential that local residents are informed about what this will mean for them and their daily lives,” said Poulsen. “The factory represents a major moment in the Armed Forces’ history, strengthening operational capacity and reducing dependence on foreign supply chains, but we must also carefully consider the impact on those living nearby.”
Approximately DKK 8.6 billion from the Acceleration Fund will be allocated during the current defence agreement period to restore national ammunition production and rebuild Denmark’s ammunition stockpiles.
