Sweden Announces Largest Ammunition Procurement Since the Cold War

Sweden has placed its largest order for 155mm artillery ammunition since the 1980s. However, actual delivery volumes may be much smaller due to the high cost of the shells.
The Swedish media Dagens industri reported on this.
The Swedish Defence Materiel Administration (FMV) signed two multi-year agreements with the Norwegian-Finnish company Nammo and the German-South African company Rheinmetall Denel Munition for the supply of 155mm shells and their propellant charges.
The total value of both contracts reached nearly half a billion dollars (approximately SEK 5 billion), making it the largest order of its kind since the 1980s.
“This is the largest artillery ammunition procurement in over 40 years,” Defense Minister Pål Jonson stated, noting that the Russia-Ukraine war has highlighted the high rate of artillery shell consumption.
Deliveries from Rheinmetall Denel Munition, which include artillery shells and propellant charges, are set to begin this year and continue through 2027.
Nammo’s deliveries will commence in 2028, featuring 155mm HE-FRAG shells with a maximum range of up to 40 kilometers.
Cost of shells
Regarding the cost of the shells, production of the ammunition contracted from Nammo will most likely take place at the company’s Swedish facility in Karlskoga. Early last year, the factory transitioned to a 24/7 work schedule to meet increased demand, including fulfilling orders for Ukraine.
Nammo’s Vice President Björn Andersson explained that although the shells are produced in Sweden, their manufacturing process spans several countries: metal casings are made in Norway and Finland, while certain types of explosives are supplied from Poland.
Meanwhile, the Swedish Defence Materiel Administration estimated the cost of a 155mm shell with a propellant charge and fuze at $8,000 per unit.
Roughly calculating the price of such a shell against the total value of the announced contract suggests about 60,000 shells. For context, this quantity is roughly equivalent to the monthly expenditure of Ukrainian artillery units in 2024.
Last year, Norway purchased a license for Ukraine to produce 155mm shells using Nammo’s technology.