Norwegian company Nammo has announced that it will establish a consolidated defence manufacturing company in the US to streamline operations.
The company intends to merge all of its existing smaller units in the US into a single entity, known as Nammo Defense Systems by January.
Nammo’s US business structure includes manufacturing facilities operating across six independent legal units.
Under the plans, the firm wants to change the existing structure to fuel growth in the US market.
Nammo CEO Morten Brandtzæg said: “We need to make sure we are spending as much time as possible on our customers, and only what is needed on internal management.
“I believe having one stronger company rather than several smaller ones allows to serve the US market more effectively than we do today, and that is why we are very pleased to be launching Nammo Defense Systems.”
To be based in Mesa, Arizona, Nammo Defense Systems will combine the company’s defence manufacturing operations in Arizona, Mississippi, Utah, Pennsylvania and Maryland.
The new company will also acquire other subsidiaries from Nammo’s US holding company, Nammo Inc.
Meanwhile, Nammo has revealed plans at the AUSA 2019 to invest around $20m by mid-2021 in new equipment for facilities in Mesa, Arizona.
The investment will allow the company to manufacture components for the US Army’s long-range artillery shells. It will also cater to other products in the US.
Brandtzæg said: “Our goal is to become one of the main providers of advanced munitions and propulsion technologies for the US Government, and this investment is just one of many examples of what we are doing to turn that vision a reality.
“The US Army lists long-range precision fires as their number one priority, and we are helping deliver on that requirement. These are real, concrete solutions that are ready here and now, and that will help deliver a truly reliable advantage to US forces.”