Nammo Sweden has secured $13.22 million in funding from the European Commission to increase the production of artillery shells by threefold in the coming year.
Earlier, the Swedish government had expressed intent to co-finance Nammo Sweden’s artillery production project if the commission supports the program.
With the EC confirming the grant under the Act in Support for Ammunition Production, Stockholm has committed $15.17 million to increase the company’s filling capacity.
Swedish Minister for Defense Pal Jonson said the expansion of ammunition will impact the defense capabilities of European countries, including Ukraine. Investing in Nammo Sweden’s project will increase the manufacturing capacity for 155 mm grenades to meet Ukraine’s demands, he added.
The expansion will also help the company fulfill an order for 155 mm artillery ammunition from the Defence Materiel Administration.
The EC also provided grants to support other programs focused on artillery production, including $7.47 million for Eurenco Bofors and $24.38 million for Nammo Lapua Oy.