European Commission Allocates €41M to Nexter, Nammo, VAK to Boost Ammo Production for Ukraine

The European Commission has greenlit a €41 million subsidy under the ASAP (Act in Support of Ammunition Production) plan to boost artillery ammunition production capacities for defense companies Nexter, Nammo, and VAK.

Nexter, a subsidiary of KNDS, is participating in an initiative to enhance propellant powder production capacities in collaboration with Norwegian and Lithuanian partners, Nammo and Valsts Aizsardzības Korporācija (VAK) respectively, to support Ukraine's defense capabilities. The investment aims to address bottlenecks and strategic dependencies in ammunition production, particularly focusing on propellant powder for 155mm artillery shells. With the assistance of European subsidies, Nexter and its subsidiary SIMMEL DIFESA, alongside partners, seek to strengthen propellant powder production capacities to mitigate critical supply vulnerabilities.

Over a projected three-year period, Nexter aims to increase its industrial capacity from producing 50,000 to 400,000 modular loads annually, providing sustained assistance to the Ukrainian armed forces and reinforcing their capabilities in the long term.

Nexter has already doubled its production capacity for artillery ammunition and tripled its output for the CAESAR cannon in response to current security challenges.