Kongsberg investing EUR 55.5 Mn to increase missile production capacity.

Financial backing from the Norwegian government and the European Union's Act in Support of Ammunition Production (ASAP) initiative is pivotal in enabling Kongsberg Defence & Aerospace to allocate approximately EUR 55.5 million (NOK 640 million) towards expanding their missile manufacturing capabilities.
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The Naval Strike Missile (NSM), currently employed by 14 nations, including 11 NATO or EU members, stands to benefit from these investments (Picture source: Kongsberg)

The escalating security dynamics in Europe underscore the imperative to secure a reliable flow and availability of ammunition and missiles. In response, the European Commission inaugurated the ASAP initiative last year, aimed at bolstering the industrial base's capacity to ramp up production of ammunition and missiles.

Kongsberg Defence & Aerospace has undertaken various steps in recent years to enhance its production capacity, including the establishment of a new missile production facility in Kongsberg, set to commence operations this summer. The latest expansion efforts are supported by contributions from the EU and Norwegian government.

The investment by Kongsberg encompasses the acquisition of new equipment and machinery to boost production capabilities at the new missile plant, alongside a new facility aimed at increasing the production of sensor components. There will also be investments to fortify the supply chain, ensuring the availability of future supplies. The company's total investment reaches NOK 640 million, with NOK 200 million funded by the Norwegian government and EUR 10 million by the EU. Eirik Lie, President of Kongsberg Defence & Aerospace, highlighted that the support from Norwegian and European authorities is instrumental in facilitating the implementation of measures to enhance missile production capacity, reduce production lead times, and improve the supply chain.

The Naval Strike Missile (NSM), currently employed by 14 nations, including 11 NATO or EU members, stands to benefit from these investments. This will not only solidify the ongoing collaboration on NSM production across European nations but also advance the development of a more robust missile ecosystem, ensuring sustained supply and readiness.

Defense News March 2024