Norwegian government allocates NOK 967 billion to boost defence industry

By Defence Industry Europe

The Norwegian government has unveiled a significant investment of NOK 967 million to enhance the country's defence industry, aiming to expand its production capacity to meet increasing demand for military equipment in Norway, Ukraine, and among its allies. The new funding is part of a strategic initiative to reinforce Norway’s role in supplying crucial defence materiel in response to the growing geopolitical challenges, especially in the wake of Russia's invasion of Ukraine.

 

Announced by Norwegian Minister of Defence Bjørn Arild Gram and Minister of Trade and Industry Cecilie Myrseth, this initiative represents a major step in Norway’s commitment to bolstering both national and allied defence capabilities.

The newly developed roadmap outlines the government’s approach to revitalising the country’s defence production sector, which has seen a decline over recent decades due to reduced demand during peacetime.

The goal is to reverse this trend by investing in key areas that will enhance production efficiency and capacity.

Minister Gram stressed the urgency of the situation, highlighting that the current security environment has created an immediate need for increased production of defence equipment.

 

LWE 300 x 250

 

He noted that Ukraine, in particular, requires a steady supply of air defence systems, missiles, artillery shells, and other essential military materiel to continue its resistance against aggression.

The roadmap aims not only to support Ukraine’s needs but also to ensure that Norway and its allies have a robust defence infrastructure capable of responding to future threats.

A substantial portion of the funding will be directed towards supporting small and medium-sized enterprises (SMEs) within Norway’s defence industry.

These companies are expected to play a critical role in innovating and producing new technologies that can be deployed by Ukrainian forces.

The Norwegian Defence Research Establishment (FFI) will manage the expanded programme, which encourages these businesses to bring innovative defence products into industrial-scale production.

This increase in support is expected to drive more projects forward and enable the manufacturing of cutting-edge technology that meets the specific needs of Ukraine’s military.

 

LWE 300 x 250

 

In addition to support for SMEs, the government plans to co-fund the establishment of a new rocket motor production line at Nammo, a key manufacturer based in Raufoss, Norway.

Nammo already operates two rocket motor production lines and has received backing to develop a third line for air defence systems and other missiles.

This latest investment will enable Nammo to build a fourth production line, further increasing its capacity to supply rocket motors, which are crucial components of missiles used by both the Norwegian Armed Forces and Ukrainian defence units.

The government’s investment strategy also focuses on strengthening the supply chain for explosives. Part of the funding will go towards developing Norway’s production capacity of hexamine, an essential ingredient used in the manufacture of advanced military explosives.

Norway is one of the few Western countries capable of producing these types of explosives, which are integral to various defence applications, including artillery shells, anti-tank systems, and rocket motors.

 

LWE 300 x 250

 

By co-funding this initiative, the government aims to ensure a secure and sustainable supply of these materials, which are critical for maintaining operational readiness.

Furthermore, the government, in collaboration with Chemring Nobel, will conduct a feasibility study to explore the establishment of a new military explosives production facility in Norway.

This study will evaluate the technical, economic, and environmental aspects of such a facility, as well as the infrastructure and workforce requirements needed to support it.

Minister Gram highlighted that any new production facility would need to adhere to future environmental standards and ensure that it has the necessary local infrastructure and skilled personnel.

This comprehensive approach marks the first time a Norwegian government has formally outlined a strategy specifically aimed at expanding its defence industry’s production capabilities.

Minister of Trade and Industry Cecilie Myrseth noted that this initiative would not only help secure Norway’s defence needs but also create new economic opportunities.

 

300 x 250

 

She emphasised that the increased investment in defence production will lead to job creation and have a positive impact on businesses across the country’s defence sector and its supply chains.

Since the onset of Russia’s aggression against Ukraine, Norway has consistently supported its defence industry with significant financial backing, including billions of NOK in grants, agreements, and strategic investments.

This latest investment under the Nansen programme reinforces Norway’s commitment to bolstering its national security and that of its allies.

 

 

Tags:

Related news & articles

Latest news

Featured