NATO Agency Secures Multinational Contracts Worth €1.1 Billion for 155mm Ammunition.

Luxembourg, January 23, 2024 – In a substantial step towards enhancing NATO's defense and deterrence posture, the NATO Support and Procurement Agency (NSPA) has announced the awarding of two multinational framework contracts totaling €1.1 billion. These contracts, aimed at procuring 155mm ammunition, have been awarded to Nexter Munitions (KNDS) and JUNGHANS Defence, marking a pivotal moment in supporting coalition nations and enhancing NATO's readiness.
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MECAR, a subdivision of Nexter KNDS produces a full range of ammunition including 155mm artillery shells. (Picture source Nexter KNDS)

The contracts are a direct result of the Defence Production Action Plan (DPAP) endorsed by the Heads of State and Government at the NATO Summit in Vilnius, in July 2023. The DPAP, devised by the Conference of National Armaments Directors (CNAD), aims to replenish NATO's stockpiles and increase equipment commonality across the alliance through three strategic pillars: demand aggregation, defense industrial capacity expansion, and the improvement of interoperability and materiel standardization.

In alignment with the DPAP's vision, the NSPA has taken a proactive role in consolidating the munition requirements of NATO nations into collective purchases. This approach was initially demonstrated on January 3, 2024, with the announcement of a contract for up to 1,000 Patriot™ Guidance Enhanced Missiles (GEM-T) to support a coalition of nations. The recent contracts for 155mm ammunition further this initiative, supporting the CAESAR and PzH 2000 howitzer platforms extensively used by NATO forces.

The NSPA facilitated these acquisitions through its Ammunition Support Partnership (ASP) framework, established in 1993, which now includes 26 participating nations. Initially requested by three NATO Allies, the contracts have garnered interest from nine nations that operate the CAESAR and PZH-2000 155mm self-propelled howitzers, indicating a strong likelihood of an expanded coalition benefiting from these contracts.

These framework contracts also encompass a comprehensive range of support services including ammunition storage, transportation, surveillance, and disposal management, ensuring a holistic approach to munition lifecycle management.

During the contract signing ceremony at NATO Headquarters, attended by North Atlantic Council (NAC) members, NSPA General Manager, Ms. Stacy A. Cummings, highlighted the importance of multinational acquisition and the use of innovative procurement methods. These contracts not only demonstrate NSPA's commitment to strengthening NATO's collective defense but also set a precedent for future collaborative procurement efforts.

Defense News January 2024