Nammo Ammunition Deal Secures Supply for Sweden
Nammo, the renowned ammunition manufacturer, has secured a substantial deal with the Swedish government valued at 1.8 billion Swedish kronor, equivalent to approximately $186 million. This agreement is part of a comprehensive 10-year framework and stands out as Nammo’s largest contract from Stockholm concerning small-caliber ammunition. With deliveries slated to occur between 2026 and 2028, this contract ensures a reliable supply of ammunition to Sweden, especially crucial during a time when global production capacities are facing significant constraints.
In a show of commitment to boosting domestic production, Swedish Prime Minister Ulf Kristersson recently visited Nammo’s facility in Karlsborg, located in southern Sweden. During this visit, he discussed the strategic ramp-up of production at the site, emphasizing the importance of enhancing Sweden’s defense capabilities. Nammo’s Executive Vice President for Small and Medium Caliber Ammunition, Reijo Bragberg, referred to the contract as a “significant order” that establishes greater predictability for Nammo and, crucially, ensures a secure supply for Sweden.
Strengthening Production and Supply Chains
Nammo’s recent contract follows a previous engagement where the company was tasked with producing 155mm artillery ammunition for Sweden. This collaboration has already seen enhancements to supply chain logistics, especially following Sweden’s contributions of artillery rounds to support Ukraine. In 2024, these improvements aimed to bolster Sweden’s defense readiness amid shifting geopolitical dynamics.
As part of a broader strategic shift, Prime Minister Kristersson announced plans in March to significantly increase Sweden’s defense spending. The government intends to raise expenditures to 3.5 percent of the nation’s GDP by 2030, marking a notable rise from the current 2.4 percent. If enacted, this initiative could lead to an impressive allocation of around 300 billion kronor, or $30 billion, towards strengthening military capabilities.
A New Security Paradigm
Kristersson highlighted the evolving security landscape in Sweden as a driving force behind these rearmament strategies. Following the country’s decisive move from military neutrality to joining NATO last year, the necessity of arming and preparing Sweden’s defense forces has become even more pronounced. The prime minister referred to the current security climate as ‘completely new,’ emphasizing that these developments necessitate an urgent and robust response.
This significant shift in defense policy not only underscores Sweden’s commitment to fortifying its military capabilities but also reflects broader trends in European security following geopolitical tensions. The agreements with Nammo are a testament to Sweden’s proactive approach in ensuring it remains well-equipped and prepared in the face of emerging global threats.
