According to the Swedish Defence Materiel Administration (FMV), the contract signed with Nammo is valued at SEK 604 million (approximately EUR 52.2 million), with SEK 300 million in a first call. The agreement includes an option for further procurement.
The number of ordered artillery shells has not been disclosed.
The agreement on the joint procurement of ammunition has been signed within the framework of Nordic Defence Cooperation (Nordefco). The aim of this cooperation is not only to support Ukraine but also to secure a long-term supply of ammunition for Nordic countries.
The main idea of this collaboration is to use existing framework agreements in one or more of Nordefco’s member states with relevant main suppliers. Making larger coordinated orders increases the suppliers’ ability to secure vital components and to adapt production and purchases from sub-suppliers. This provides increased long-term planning and more efficient production. It also aligns with the ambition to increase the production of artillery ammunition within the EU, as stated by FMV.