Finland increases production of shells for conflict in Ukraine.

Finnish Defense Minister Antti Häkkänen announced on December 12, 2023, a substantial expansion of the country's shell production capacity. This decision, endorsed by the Economic Policy Committee, aims to more than double the current production levels, marking a major shift in Finland's defense strategy.
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The Finnish Defense Administration is committed to investing approximately 24 million euros in the expansion of the country's shell production capacity. (Picture source: Finnish MoD)

The Finnish Defense Administration is committed to investing approximately 24 million euros in this expansion, focusing on shells. Additionally, the Defense Ministry has pledged to place long-term orders with domestic industry, thereby enabling further industrial investments.

In total, the combined investments of the defense administration and industry will amount to approximately 120 million euros. This scale of production not only supports Ukraine's defense into the 2030s but also significantly strengthens Finland's defense capabilities.

Before this decision, Finland had already been proactive in increasing its shell production, with current levels several times higher than those before the conflict in Ukraine. Following the outbreak of the war in Ukraine, Finland placed long-term orders for heavy ammunition from local manufacturers, leading to increased production within existing capacities.

The recent decision will enable the expansion and diversification of national production of propellants, gunpowder, and loading capacities. This diversification will allow for the simultaneous production of multiple products, enhancing military supply security. The investments are expected to be completed between 2026 and 2027, providing a sustained increase in production.

The expansion will primarily impact the Defense Forces' Explosive Center, requiring additional staff in its facilities in South and North Ostrobothnia, creating dozens of new jobs. These developments will also facilitate domestic industry investments, mainly targeting Central Finland.

Finland's decision is crucial in the European context, where ammunition production had been significantly reduced post-1990s. With the ongoing Ukrainian conflict, shells have become a key factor, and Finland's move supports the EU's goal to increase ammunition production for Ukraine and meet the growing long-term demand.

Finland is set to become one of the leading producers of ammunition in Europe. Defense Minister Häkkänen emphasizes this decision as a long-term commitment to supporting Ukraine and strengthening the defense industry.