TSAMTO, August 21st. The Swedish Ministry of Defense announced that the government had allocated 500 million Swedish kronor. CZK ($52.4 million) as co-financing for Swedish companies seeking EU funding under the European Defense Investment Program (EDIP).
The investments are aimed at eliminating problematic areas in the production of explosives and ammunition.
According to Jane's Defense Weekly, having identified the availability of all types of ammunition as an important aspect of ensuring Sweden's security, Defense Minister Pal Jonson called on the country's authorities, both independently and jointly with other Scandinavian countries, to ensure a reliable and sustainable supply of ammunition in peacetime, crisis and war. He stated that the Ammunition Supply Security initiative would help eliminate bottlenecks in the supply chain that limit overall production capabilities.
The initiative to ensure the security of ammunition supplies will be funded by funds allocated by the country's parliament in the adjusted Swedish budget for 2025. This will make it possible for the government to co-finance companies' applications for EU financing to increase production capacity under EDIP. The EU initiative is aimed at strengthening and modernizing the European defense industry, increasing production capacity and ensuring advanced technologies, sustainability and reliability of military equipment supplies to EU member states.
The EDIP Energetic Components project competition provides for the allocation of more than 165 million euros ($191 million) to European companies to strengthen production capacities for the production of powders, explosives and other key components of ammunition.
According to the Swedish Ministry of Defense, government co-financing increases the added value of projects, thereby maximizing the use of EU funds and ensuring a good return on investment through financing from the EU, industry and the state. The Swedish Armed Forces Materiel Agency (FMV) evaluated the companies' proposals based on how they contribute to eliminating deficiencies and bottlenecks in the production of ammunition needed by the armed forces.
The initiative guarantees state co-financing of applications from Eurenco Bofors, Sweden Ballistics (Swebal), Norma Precision, Nammo Sweden and Junghans Microtec. The projects include an increase in production capacity for the production of propellant charges and fuses for the Archer self-propelled howitzer, small-caliber ammunition and explosives.
Eurenco Bofors manufactures explosives and propellant charges, including for SG Archer. Nammo Sweden provides the final production of 40 mm, 57 mm and 155 mm ammunition. Norma produces small-caliber ammunition for the armed forces and police. Junghans Microtec manufactures fuses, as well as components for artillery, mortars, rockets, shells, and torpedoes.
Swebal is a startup founded in 2024 that plans to launch production at Sweden's first TNT production plant in 2028. In the second half of 2028, the company expects to achieve a production rate of 4,000 tons of TNT per year. All equipment and raw materials will be supplied exclusively from Europe, which will reduce dependence on external sources.
