Finland’s defence industry has received a €32.5m ($35.4m) grant through the Act in Support of Ammunition Production (ASAP) to ramp up production of key munitions, including 155mm artillery shells, announced 15 March 2024, complementing a €24m ($26.1m) investment Finland’s own Ministry of Defence allocated in December 2023.
ASAP funds of €500m from the EU budget are intended to be available to member nations to support a rapid increase in production of ammunition, a requirement put into the spotlight during the war in Ukraine, as nations reflected on their own stockpiles during the ongoing conflict.
“Long-term advocacy at the EU and direct contacts with Commissioners produced results. We got what we went for,” said Finland’s Minister of Defence, Antti Häkkänen.
“The funding decision is in line with the plan drawn up by the Ministry of Defence in December to increase domestic ammunition production. The decision will finance investments that are critical to military security of supply and enable long-term support for Ukraine.”
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By GlobalDataWith the funds allotted to Finland, €22.5m will be granted to Nammo Papua Oy for the production of 155mm artillery grenade shells and €10m was granted to Nammo Vihtavuor.
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Finland’s 2023 was a busy year for 155mm ammunition procurement. The funds granted in December of that year followed a purchase in February of €35m of 155mm ammunition through French-based Nexter Munitions, and a €103m purchase of the shells from Nammo Lapua in March.
The war in Ukraine has led to heightened consumption of 155mm artillery munitions, with both Russia and Ukraine seeking outside supplies of the shells to feed the high rate of artillery barrage sustained in the conflict. Nato and European Union allies have contributed significant volumes of support to Ukraine, while Russia has negotiated for a supply of ammunition from North Korea.
Many European nations became aware, as they donated stock to the defence of Ukraine, that their industrial production base for ammunition had dwindled to a level that could not sustain ambitious military aid targets and meet their own defence requirements, so legislated within the European Union to ramp up production.
The grant of funds to Finland, one of Nato’s newest members, is a product of the European animus to replenish stockpiles of basic ammunition.
