Norwegian government allocates two billion kroner to boost defence industry production

By Defence Industry Europe

In response to the escalating needs for ammunition due to the war in Ukraine, the Norwegian government has announced an allocation of an additional two billion kroner to enhance the production capacity of its defence industry. This move is a part of the government's robust efforts to address the high demand for munitions in the current geopolitical climate.


One billion kroner of this funding will be directed towards specific projects at Nammo, aimed at increasing the production of artillery ammunition. The remaining one billion kroner will be allocated to other projects within the Norwegian defence industry. This announcement was made by Norwegian Prime Minister Jonas Gahr Støre, emphasizing the government’s commitment to reinforcing the nation’s defence capabilities.



Previously, the government had set aside approximately one billion kroner to boost Norwegian production capacity through co-financing of so-called ASAP projects. With the latest funding, the total support for production enhancement now stands at three billion kroner.

Norwegian Defence Minister Bjørn Arild Gram highlighted the significance of this initiative, stressing its importance not only for Ukraine but also for maintaining Norway’s own security. The increase in production capacity at Nammo is expected to fulfill the needs of Norway, its allies, and Ukraine.



The funding for these initiatives will be sourced from the Nansen program. The Norwegian government has been actively working to replace donated ammunition and strengthen its emergency reserves. Over the past year, it has placed several large contracts with ammunition manufacturer Nammo, including the largest contract in the company’s history.

Additionally, Norway is participating in a Nordic ammunition project and is involved in relevant European initiatives like ASAP. Through this program, Norwegian applications from companies such as Nammo, Kongsberg Defence and Aerospace, and Chemring Nobel have been supported with approximately one billion kroner, as confirmed by the Norwegian Defence Minister.



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