Denmark to Rebuild National Ammunition Production in Frederikshavn with Nammo
On June 28, 2025, Danish Minister of Defence Troels Lund Poulsen announced a landmark agreement to re-establish national ammunition production in Elling near Frederikshavn, in collaboration with Norwegian defence company Nammo AS. The initiative marks a strategic shift in Denmark’s defence policy, aimed at enhancing supply security, reducing foreign dependency, and strengthening Nordic defence cooperation.
The agreement includes the creation of Nammo Denmark A/S, a new subsidiary in which the Danish government will hold a 15% minority stake. The factory will produce 155 mm and 120 mm artillery shells, as well as 5.56 mm and 7.62 mm small-calibre cartridges, with production expected to begin in late 2027.
“In light of the heightened security situation, it is very important that both Denmark and European allies fill their ammunition stocks,” said Danish Minister of Defence Troels Lund Poulsen.
“With financing from the Acceleration Fund, we can now begin construction and production of ammunition in Denmark. The factory ensures access to a strategically important capacity and reduces Denmark’s dependence on other countries’ supply chains.”
The project is backed by DKK 8.6 billion from Denmark’s Acceleration Fund, part of the current defence agreement. It follows a political decision in February 2025 to assign Nammo responsibility for restoring Denmark’s ammunition production capabilities.
Nammo CEO Morten Brandtzæg emphasised the long-term vision:
“This is about supply security, Nordic cooperation, and a long-term perspective. Nammo is investing significantly in this venture, which will create jobs and economic activity.”
The announcement also included plans for a larger safety zone around the facility, potentially requiring compulsory property purchases if voluntary agreements with nearby residents cannot be reached.
The move is seen as a milestone in Denmark’s defense history, reinforcing its operational readiness and industrial resilience in an increasingly volatile security environment.
