Nammo Completes Florida Acquisition and Releases Annual Report
(Source: Nammo; issued May 06, 2020)
Nammo is today confirming that it has completed its acquisition of Chemring Ordnance Inc. in Perry, Florida - now Nammo Perry Inc. The announcement comes as Nammo releases its Annual Report for 2019, in which the company posts its second consecutive year of record-high revenue and order books, the latter growing nearly 30% from 2018.

“Nammo Perry Inc. is joining the group during a time of major change and development for the company. First of all, we are doing and delivering more than ever, and taking an even greater role in supporting the security of supply for our core markets. Secondly, the arrival of Perry means we now have more employees in the US than anywhere else, which in itself represents a major milestone for Nammo,” said President & CEO of the Nammo Group, Mr. Morten Brandtzæg.

Continuing Decades of Growth

This milestone follows more than a decade of rapid growth for Nammo in the US. Brandtzæg attributes the success to the company’s focus on delivering a truly reliable advantage through technology, service and close customer engagement, an approach that has become Nammo’s hallmark among advanced defense agencies and businesses, space exploration agencies and competition shooters worldwide.

“The consistent feedback we are receiving from our customers is that they appreciate not only what we deliver, but also how we work. We have a uniquely flat and trust-driven structure and culture that is always pushing for improvements in all areas and at all levels. In the last year alone, this has helped us deliver both major technological innovations, as well as improvements in structure and processes that will ensure that Nammo will continue to be the partner of choice for the most demanding customers in our areas,” he said.

Contributing to Security of Supply

Another trend seen in 2019, and which has continued during Q1 of 2020, is an increased focus on readiness and security of supply – the ability to secure the availability of critical technologies, components and products at all times. A key example of this trend is the strategic partnership Nammo has developed with the Norwegian Armed Forces, and with whom it signed a four-year ammunition contract in June 2019 worth more than NOK 1.7 billion, the largest single contract in the company’s history.

“Security of supply was one of the main reasons why Nammo was founded more than 20 years ago, so for us this has always been in our DNA. But if there is anything the COVID-19 pandemic has taught us, it is just how vulnerable our societies are, how quickly things can change, and how important it is for governments and industry to work together to address these challenges. This is why we will continue our efforts to develop this kind of closer partnerships with our customers,” said Brandtzæg.

Morten Brandtzæg shakes hands with Petter Jansen, head of the Norwegian Defence Logistics Organization following the June 2019 signing of a four year framework agreement with Nammo.

Improving Nammo

Going forward, Nammo will continue its efforts to improve both its profitability and its industrial capabilities, both in Europe and in the United States.

“We have been working aggressively for several years now to improve our operations and our cost base, and in the process we have identified and absorbed several one-off costs that will help improve future profitability. During 2019 we also had several other factors contributing to the unprecedented level of one-offs, but all in all I still believe we are much better placed at the start of 2020 than we were 12 months earlier,” said Brandtzæg.

He sees improved profitability as critical to the future success of the company.

“Nammo’s growth has always been completely self-funded. We have never taken outside money to buy our way ahead. We have some major investments underway, particularly in the United States, and we need to support these by delivering sustainable and solid profit levels,” said Brandtzæg.

Building on Strong Multinational Partnerships

Another major 2019 milestone was the announcement of a new, consolidated US manufacturing arm, Nammo Defense Systems Inc. With the United States now taking the lead in terms of both revenues and employees, Brandtzæg believes that Nammo is better positioned than ever to support new forms of international and transatlantic defense partnerships.

“We have always been a multinational company, and every successful product we have had has been a result of cooperation between governments, engineers and manufacturers in several countries. While national security of supply is becoming more important, and rightfully so, we should not let that distract ourselves from the fact that we are stronger together than apart. The latest example here is the progress we have made in recent years at developing ramjet propulsion for both artillery and missiles, something that would not have been possible without the contributions from both sides of the Atlantic. We believe this kind of cooperation is the best way forward both for Nammo, our customers and for their partners and allies,” said Brandtzæg.

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