Sweden's government is allocating SEK 500 million in state co-financing to projects at five companies to strengthen Sweden's security of supply for ammunition. Norma and Sweden Ballistics (SWEBAL), both covered by the initiative, have welcomed the announcement and highlighted the need for increased Swedish production capacity.
According to the government's press release, projects from EURENCO Bofors AB, Sweden Ballistics AB, Norma Precision AB, Nammo Sweden AB and JUNGHANS Microtec GmbH are covered. The projects concern increased manufacturing capacity for propelling charges and fuzes for the Archer artillery system, as well as small calibre ammunition and explosives.
"Ammunition is in short supply across Europe. The war in Ukraine requires large volumes while Sweden and our allies are replenishing their stocks. This investment strengthens security of supply, creates more Swedish jobs and builds the production capability required in peace, crisis and war," writes Defence Minister Pål Jonson in a post on X.
The funds will be used for state co-financing of the companies' applications for EU funding under the European Defence Industry Programme (EDIP). The current call, Energetic Components, encompasses more than EUR 165 million for European companies to increase production capacity for, among other things, propellants, explosives and other components for ammunition.
"Access to ammunition at all levels of readiness is a matter of essential security interest for Sweden. Sweden must, both on its own and together with the other Nordic countries, ensure a robust and sustainable supply of ammunition in peace, crisis and war. This investment helps reduce the bottlenecks in the supply chain that limit overall production capacity," says Defence Minister Pål Jonson in the government's press release.
In a post on LinkedIn, Norma states that the company welcomes the investment and that it provides further opportunities to contribute Swedish production capacity and strengthened security of supply in peace, crisis and war.
“Sweden has a proud tradition of ammunition production, and the right investments are now being made to scale up volumes. Genuine security of supply depends on the entire supply chain, with no weak links. That is why it is particularly encouraging to see this focus on critical inputs and components,” says Joakim Sjöblom, CEO and co-founder of SWEBAL, in a press release from the company.
The SEK 500 million is drawn from the SEK 25 billion for so-called opportunistic purchases that the Swedish parliament (Riksdag) approved in the 2025 Spring Amending Budget.