The cost for the construction of buildings for Denmark's national ammunition production in Elling (northern Denmark) is increasing by approximately 480 million DKK. The additional cost is partly due to risk management for sympathetic detonation, but the expenditure is managed within the framework of already allocated reserves, according to the Danish Defence Acquisition and Logistics Organisation (FMI).
– Today, I have informed the parties behind the defence agreement that additional costs have been identified in connection with the buildings for the national ammunition production in Elling. I find it regrettable that the project has become more expensive, but I note that the additional costs are covered within the allocated reserve, says Denmark's Minister of Defence Troels Lund Poulsen in a press release.
According to the announcement, the increase of 480 million DKK is mainly linked to an expansion of the building area. This is done to minimise the risk of the transfer of detonation, known as sympathetic detonation, between the production parts, according to FMI. In addition, the construction of an extra shooting range and necessary adjustments to the local infrastructure are included.
The financing of the additional costs is taken from the allocated reserve under the Acceleration Fund, which is aimed at national ammunition production. The Ministry of Defence states that it will also utilise released funds from the overall project budget to cover the total increase.
The handling of the additional costs is justified by the desire to ensure continued progress in the project to strengthen supply security. The matter is now being submitted to the Danish Finance Committee for final approval, after which the construction of the facilities will continue according to the updated plan.