The Swedish Defence Materiel Administration (FMV) has awarded a contract, worth Skr1.8bn ($185.8m), to Norwegian-Finnish defence firm Nammo to supply small-calibre ammunition.
The FMV also placed an order with Norma for Skr1.4bn worth fine-calibre ammunition.
The two framework agreements with the two manufacturers are set to span a duration of ten years and include an initial procurement period of three years.
Deliveries under the orders are scheduled to occur between 2026 and 2028.
FMV Weapons and Protection Department head Carl-Axel Blomdahl said: “To once again sign long-term contracts with industry is very gratifying. The fact that it also contributes to good production conditions for the industry and increases security of supply makes it even more motivating.”
The 10-year deal with Nammo forms part of a broader framework agreement recently established with FMV. This contract marks the most significant procurement of small-calibre ammunition by Sweden from Nammo to date.
Nammo small and medium calibre ammunition business unit executive vice-president Reijo Bragberg said: “This is a significant order and a key agreement that ensures greater predictability for Nammo and, even more importantly, security of supply for Sweden.”
In a statement, Nammo said: “The agreement is an important step to secure deliveries of ammunition at a time when global capacity is scarce. The significance of the agreement was further underlined by Swedish Prime Minister Ulf Kristersson’s visit to the factory in Karlsborg, where he stated that the defence industry plays an important part in defending the democracy.”
A substantial portion of the production work is planned to be carried out at Nammo’s facility in Karlsborg, Sweden.
In May 2022, FMV and Nammo signed a seven-year contract for the supply of different types of 12.7mm ammunition. Nammo Palencia (Spain) and Nammo Raufoss (Norway) are supporting the deliveries.
The initial value of the contract was Skr120m, with the potential to increase to approximately Skr500m should all available options be exercised.
In 2024, Astor Defence signed a four-year agreement to supply Nammo with TNT explosives.
The company revealed plans to deliver “thousands of tonnes” of TNT to support Nammo’s production of 155mm artillery shells.
