New Enterprise to be Established in Germany for the Production of 155 mm Shells

Diehl Defence and Nammo will launch production of 155 mm artillery shells in Germany through a joint venture.

The Federal Cartel Office reported that Norway’s Nammo already manufactures significant volumes of 155 mm artillery ammunition.

Diehl, on the other hand, generally only produces artillery ammunition in limited quantities. Nammo and Diehl jointly participated in a tender for a large Bundeswehr contract for the production and supply of 155 mm artillery ammunition and won.

A joint venture owned by both companies will be established to fulfill the contract.

Diehl will then build a production facility in Germany as required by the tender and manufacture the ammunition on behalf of the joint venture.

Nammo, as the developer of ammunition, including for Ukraine, will license the intellectual property rights necessary for production and supply some components. The agency noted that Diehl would not be able to fulfill this order on its own. Nammo developed the ammunition ordered by the Bundeswehr and owns the intellectual property rights to it.

Therefore, Diehl’s cooperation with Nammo does not restrict competition. At the same time, Nammo would probably not have been able to set up production in Germany on its own or would not have had a chance of winning the contract without a German partner.

“Thanks to the cooperation between Nammo and Diehl, they are effectively becoming a competitive player in the market, which even promotes competition,” the German government stated.

The company will also be able to supply 155 mm shells to Ukraine. In addition to the Bundeswehr, several other countries will also have the right to order these munitions.

“The long-term supply of 155 mm artillery ammunition within this joint project should ensure reliable supplies for the Bundeswehr and its allies,” the administration reported.