Norway said on Friday it would place an order for artillery shells worth 2.6 billion kroner ($263 million) to boost its ammunition stocks.
The Ministry of Defense has signed an agreement with the national ammunition manufacturer Nammo which, as a result of this “biggest contract ever”, will increase its production capacity.
“There is a new geopolitical situation, there is a war in Europe and the level of preparedness has been raised,” Defense Minister Bjorn Arild Gram told reporters.
“This creates the need for more military hardware, including ammunition…because Norway and other countries need to bolster their own stocks and because Ukraine is in dire need of military hardware,” he added.
The order announced on Friday covers an undisclosed number of long-range artillery shells recently developed by Nammo.
“This allows us to increase our production capacity and gives us enough visibility to place orders with our suppliers so that we can guarantee future deliveries,” Nammo managing director Morten Brandtzaeg said.
Nammo, which has more than 2,700 employees, is owned equally by the Norwegian state and the Patria company, with 50.1 percent owned by the Finnish state and 49.9 percent owned by Norway’s Kongsberg Gruppen.