Denmark has signed a contract with the Norwegian-Finnish defense company Nammo for shell production.

The Hartpunkt newspaper reported that the shells will be produced at a plant in Northern Jutland.

The Danish Ministry of Defense has announced that it will buy back the former Ammunitionsarsenalet ammunition plant, locally known as Krudten (Powder Plant) in Northern Jutland, in 2023.

Denmark sold the 17th-century AMA plant in 2008 for €2.41 million to Spanish ammunition manufacturer Expal.

The plant continued to produce weapons and provide services to the country’s Ministry of Defense as one of its main customers.

This lasted until 2020, when, after several years of losses, EXPAL decided to shut down the facility and liquidate it entirely.

The site and the remaining infrastructure were sold to a group of private investors who decided to reorganize the area into a technology park.

The closure of the plant actually meant not only the liquidation of an important and historic local enterprise, but also the cessation of ammunition production in Denmark.

The Danish government paid a total of DKK 19.6 million (about €2.6 million) to buy the plant.

The defunct Denex facility in Elling consists of 50 buildings on an area of 18,000 square meters.

Nammo is one of the largest ammunition manufacturers in Europe, which should help Ukraine with artillery shells.

In 2024, it became known that Ukraine would also launch the production of 155-mm shells using the technology of the Norwegian company Nammo.