Denmark signs ammunition deal to boost domestic production citing heightened security situation

(Danish Ministry of Defence)

By RCI, CBC News

As security concerns continue to rise in Europe, Denmark has signed a contract with the Norwegian defence giant Nammo to re-establish domestic ammunition production.

The agreement, finalized late last week, will see Nammo Denmark A/S re-establish a new production facility in Elling, Denmark.

The Danish Ministry of Defence has agreed to a 15 percent stake in Nammo Denmark A/S, making the Danish state a co-owner in the venture. The government said this is to ensure a steady, secure supply of ammunition — something that’s become more pressing in the wake of Russia’s invasion of Ukraine and the knock-on geopolitics shifts happening worldwide.

“In light of the heightened security situation, it is very important that both Denmark and European allies fill their ammunition stocks,”  Troels Lund Poulsen, Denmark’s Minister of Defence, said in a statement.

“I am therefore pleased that, with financing from the Acceleration Fund, we have entered into a contract with Nammo, and that we can now start the construction work and the production of ammunition in Denmark.”

The facility will produce everything from artillery shells to smaller-caliber rounds, allowing Denmark to reduce its reliance on foreign suppliers.

Nammo CEO Morten Brandtzæg called the project a long-term commitment to ensuring that Denmark’s defence needs are met.

“[This] is about security, Nordic cooperation, and a shared commitment and the long-term perspective,” he said.

“We live in a time of great geopolitical unrest, and where the world is changing daily. Defence and self-sufficiency are therefore at the top of the big agendas.”

The Danish government said the venture would affect local residents as a large security zone would have to be established requiring the expropriation of some properties.

Poulsen acknowledged the impact it would have on the affected residents but sought to assure that they “must be taken good care of.”

The facility is expected to open by 2027.

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