Norway will allocate about $90 million to increase the production capacity of the defense industry.

The Norwegian government announced this.

The allocated funds will be used, in particular, for the production of weapons as part of the assistance to Ukraine.

It regards four new projects, in particular for the production of the rocket engines and the explosive components.

It is noted that all projects were aimed at increasing the production of ammunition and supporting the defense industry in Norway, which also included assistance to Ukraine in strengthening its air defense.

Defense Minister Bjørn Arild Gram emphasized that there was a significant and urgent need for defense equipment for Ukraine and its allies, as well as for national needs.

In this regard, the Norwegian government will allocate up to NOK 967 million ($90 million) to increase support for the defense companies’ innovations.

The funds will be allocated to:

• the small and medium-sized Norwegian companies that can apply for funding for technologies that can be useful for the Ukrainian Defense Forces;
• a new rocket engine production line at the Nammo plant. These engines are used in most air defense systems manufactured in Germany and the United States;
• increase in Norwegian production of hexamine, an important component for the creation of modern explosives;
• a feasibility study for a new explosives plant.

Minister Bjørn Arild Gram emphasized that in Norway and in Europe as a whole, the production capacity of the defense industry had decreased after a long period of peace and declining demand. However, the Russia’s full-scale invasion of Ukraine requires a revision of this trend.

He also noted that Ukraine depended on access to air defense systems, missiles, artillery shells, and other means to continue its defense.

In September, the Norwegian government proposed to increase its support for Ukraine by NOK 5 billion (€425 million) this year and to provide at least NOK 15 billion (€1.275 billion) a year until 2030.

The Norwegian assistance is provided under the Nansen Program. This is a collective term for Norwegian support to Ukraine, both military and civilian.