The Danish government has finalized a contract with Norwegian ammunition manufacturer NAMMO, officially becoming a minority co-owner in NAMMO Denmark A/S.
This strategic move is part of Denmark's broader plan to re-establish national ammunition production and enhance the security of supply in the defense sector.
Defense Minister Troels Lund Poulsen confirmed the development on Thursday, stating that the agreement aligns with national and European efforts to rebuild ammunition stockpiles in response to the evolving security landscape.
“In light of the heightened security situation, it is very important that both Denmark and European allies fill their ammunition stocks. I am therefore satisfied that with funding from the Acceleration Fund we can establish a national ammunition production,” Poulsen said.
“The ammunition factory ensures access to a strategically important capacity and reduces Denmark's dependence on other countries' supply chains,” he added.
The planned production facility in Elling, northern Denmark, will be operated by NAMMO Denmark A/S, a new subsidiary of the Norwegian company. Under the agreement, the Danish state will assume a minority stake in the subsidiary, ensuring long-term access to critical ammunition supplies for the Danish Armed Forces.
The announcement follows a political decision in February 2025 to assign NAMMO responsibility for overseeing the national ammunition production project. The project is funded through Denmark’s Acceleration Fund, which supports rapid defense capability enhancements.
The next step involves the presentation of the agreement and related obligations to the Finance Committee of the Danish Parliament. The contract is also subject to final approval by NAMMO’s board of directors.