Nammo is delivering 12.7mm ammunition to Sweden as the sole supplier until 2029 ~ initial contract value is 120 million Swedish Kroner.
Press Release, Raufoss, 03 May 2022: Nammo has signed a new contract with the Swedish Defence Materiel Administration (FMV). The agreement sets up Nammo as the sole supplier of 12.7mm ammunition until 2029.
The week before Easter Nammo signed a new framework contract with FMV in Sweden. This is a seven year contract with different types of 12.7mm ammunition. Deliveries will come from both Nammo Palencia (Spain) and Nammo Raufoss (Norway). Nammo Sweden is the prime contractor.
This means that Nammo is the only main supplier of 12.7mm ammunition to the Swedish Armed Forces for the coming seven years. The initial contract value is 120 million Swedish Kroner, but the end value could rise to around 500 million Swedish Kroner if all options are used.
“This is an important contract for Nammo. We are delighted, this really helps the long term cooperation with our Swedish partners. In today’s security environment, strategic partnerships and security of supply agreements are especially important. They ensure the customer gets what they need, and that we as an industry can have predictability,” says Kim Helge Dahl, Nammo’s product director for small and medium calibre.
The first delivery order has already been received. Nammo is now set to deliver substantial quantities of ammunition, and production will be ramped up to meet the company’s obligations.