Nammo AS has seen substantial growth since its founding in 1998 and has steadily bolstered its presence in its main markets in Europe and North America. In spite of the challenges posed by supply-chain issues and the war in Ukraine, the company’s main market areas continued to develop favourably in 2022. Nammo’s sales, profits, and order stock all rose to record high levels during the year, while its market share and role in security of supply have been bolstered in its key markets. The largest driver behind its sales growth in 2022 was the rise in commercial ammunition sales in US market. Also, many military clients increased their procurements.
Continued close collaboration with the Finnish Defence Forces deepens
Nammo Lapua Oy and Nammo Vihtavuori Oy, part of the Nammo Group, have an established strategic partnership agreement with the Finnish Defence Forces, which started in 2014. The strategic partnership agreement covers all states of preparedness and the production of ammunition and explosives that safeguards the basis of the domestic security of supply in the sector. Nammo also has a security of supply partnership with the Norwegian Armed Forces.
Investing for the future
In August 2022, Nammo announced a EUR 33 million investment in a new primer factory to be built at the Vihtavuori facility in central Finland. A primer is a component of ammunition used to ignite the propellant that in turn forces the projectile out of a gun barrel. The new primer factory is scheduled for completion in 2025 and will employ an additional 50 people at the site. It will help ensure the security of supply needs for the defense forces in the Nordic region and will bolster the resilience of Nammo’s supply chain.
To support its long-term business prospects, Nammo continued to make major investments in R&D in key technologies and competence that are important for the company’s development. For instance, the company continued to make significant new advances in ramjet technology that enables increased range and accuracy of artillery shells and missiles.
Focus areas during the year also included strengthening the internal systems and processes. The continuous development of responsibility is also an integral aspect of all operations at Nammo Ethics, transparency and a strong focus on preventing corruption lie at the heart of business management. In terms of environmental responsibility, Nammo is committed to key UN Sustainable Development Goals. The company works towards their achievement with measures such reducing waste, improving efficiency in the use of energy and materials, and working to improve reducing its carbon footprint Nammo also seeks to influence customers to be more sustainable, meaning a greater emphasis on sustainable raw materials and recycling products at the end of their life.
Source: Patria’s Annual Report 2022.
