Nammo has signed a 1.8-billion Swedish kroner ($186 million) deal with Sweden to supply small-caliber ammunition.
The order is part of a new 10-year framework agreement, the largest contract awarded to the company by Stockholm for the cartridges.
Deliveries for the ammunition will take place from 2026 to 2028, ensuring secure deliveries of ammunition to Sweden “at a time when global capacity is scarce.”
Swedish Prime Minister Ulf Kristersson visited the company’s Karlsborg facility in southern Sweden to discuss the site’s production ramp-up.
Meanwhile, Nammo Small and Medium Caliber Ammunition Executive Vice President Reijo Bragberg called the deal a “significant order and a key agreement that ensures greater predictability for Nammo and, even more importantly, security of supply for Sweden.”
Sweden also previously tapped Nammo to produce 155mm artillery ammunition. Enhancements to the ammo’s supply chain were enacted in 2024 to offset Sweden’s handover of artillery rounds to Ukraine.
Changes to Defense
Kristersson announced in March that the administration is looking to increase defense spending to 3.5 percent of the country’s GDP by 2030, a sharp increase from the current 2.4 percent.
An estimated 300 billion kroner ($30 billion) will be spent if the plan moves forward.
According to the prime minister, Sweden’s “completely new security situation” is the main reason for the rearmament measures, having retired from military non-alignment and becoming a NATO member last year.
