COPENHAGEN (Reuters) – Norwegian defence firm Nammo has won a tender to produce grenades and ammunition at a plant in north-west Denmark, Danish Defence Minister Troels Lund Poulsen said on Friday, as the Nordic country seeks to ramp up its defence capabilities.
Denmark in October 2023 said it had agreed to buy the mothballed arms factory in Elling in northern Jutland, with the aim to restart ammunition production after a 55-year gap to ensure domestic supplies.
Last week, the Danish government announced it would increase its defence budget by a combined $7 billion this year and next to address acute military shortcomings.
Nammo is a top European producer of ammunition that is 50% owned by the Norwegian government and 50% owned by Finnish defence company Patria.
Nordic NATO members Denmark and Norway on Tuesday said they planned to increase their cooperation on defence, and said they would present concrete proposals in May.
(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik)
