Historical Ammunition Contract
(Source: Norwegian Ministry of Defence; issued June 28, 2019)
(Unofficial translation by Defense-Aerospace.com)
Today, a historic agreement was signed for the supply of ammunition to the Norwegian Armed Forces. The contract has a limit of NOK 1.7 billion and is the largest ammunition contract entered into in Norway.
“It is absolutely crucial that the Armed Forces have sufficient ammunition both for operational activities and for emergency storage. This has been a challenge for many years and I am very pleased that we now get this in order,” says Defense Minister Frank Bakke-Jensen.
It is the Norwegian-Finnish company Nammo who will deliver the ammunition.
Nammo Signs Historic Framework Agreement with the Norwegian Armed Forces
(Source: Nammo; issued June 28, 2019)
Nammo today signed a four-year framework agreement with the Norwegian Defence Logistics Organization (NDLO) for ammunition deliveries to the Norwegian Armed Forces. Worth more than NOK 1.7 billion, the agreement will support Norway’s efforts to improve its levels of training and operational readiness.
“We are honored by the trust placed in us by such a demanding customer as the Norwegian Armed Forces,” said Morten Brandtzæg, President & CEO of the Nammo Group.
Norwegian Minister of Defense, Mr. Frank Bakke-Jensen, emphasized the importance of the agreement in addressing the longstanding concern regarding ammunition supply.
“It is absolutely crucial that the Armed Forces have sufficient ammunition both for day to day operations and for its readiness stores. This has been a challenge for several years, and I’m very pleased that we will now get this resolved,” said Mr. Bakke-Jensen.
Petter Jansen, CEO of the Norwegian Defence Logistics Organisation, also expressed his satisfaction with the agreement.
“Strategic partnerships with solid industrial enterprises is a cornerstone of our approach to military logistics and supplies in peace, crisis and conflict. Nammo is a business we have a long-standing cooperation with and they are a trusted partner for the Norwegian Armed Forces. Today’s framework agreement with Nammo takes us a long step forward in terms of preparedness, readiness and operational effect,” said Jansen.
The framework agreement sets the terms for a series of subsequent agreements between Nammo and the NDLO. The first of these was also signed during today’s ceremony at Oslo’s historic Akershus fortress, and it outlines the expected deliveries to the Norwegian Armed Forces over the coming four years. This not only allows Nammo to plan and deliver more efficiently, but also to secure long-term supplies of critical raw materials and components.
“This is the kind of relationship we want with all our core customers, as we believe it delivers substantial benefits to both sides, both in terms of cost during peace time and security of supply in times of crisis and war,” said Mr. Brandtzæg.
Nammo and NDLO today also signed a letter of intent to pursue a second agreement within the scope of the framework agreement, which will detail Nammo’s role in preserving Norway’s national security of supply.
“Ammunition manufacturing today is about a lot more than just brass and gunpowder. It depends on an increasingly complex supply chain with long lead times and on the availability of highly skilled people able to operate sophisticated manufacturing equipment. We are able to manage this today thanks to our broad international presence and expertise, but going forward we see long-term strategic partnerships with our customers as the best way of addressing the challenge that this growing complexity represents,” said Mr. Brandtzæg.
Nammo is an international aerospace and defense company headquartered in Norway. With 2400 staff spread across more than 30 sites and offices in 13 countries, Nammo is one of the world's leading providers of ammunition, rocket motors and demilitarization services for both military and civilian customers.