2023
Capacity to produce heavy ammunition will be significantly increased
On 12 December 2023, Minister of Defence Antti Häkkänen decided to increase Finland's ammunition production capacity. The Ministerial Committee on Economic Policy supported the matter at its meeting of the same date.
The decision makes it possible to increase production capacity to more than twice the current level. The defence administration is committed to investing approximately EUR 24 million in increasing the production of heavy ammunition, and the Ministry of Defence commits to long-term orders from domestic industry, which enables industry's own investments.
In total, the investments of the defence administration and industry amount to approximately EUR 120 million.
- This decision will significantly increase the heavy ammunition production capacity in Finland, which will make it possible to support Ukraine in the long term into the 2030s. While strengthening Finland's own defence capability, the increase is significant also on the European scale, says Minister of Defence Antti Häkkänen.
Production has already been increased
The defence administration has systematically increased the production of heavy ammunition and, as a result, Finland's ammunition production has already multiplied compared to the level before the war in Ukraine.
- In addition, since the start of the war in Ukraine, the defence administration has made long-term orders for heavy ammunition from the domestic manufacturing industry. This has enabled the industry to hire additional personnel and increase the volume of ammunition production within the existing capacity, Häkkänen says.
Investments will increase production capacity in the long term
Based on a recent decision, domestic production of ammunition and powder, and charging station capacity will be increased and decentralised. This makes it possible to manufacture several different products simultaneously, which supports military security of supply. Investments are expected to be completed during 2026 and 2027 to increase the long-term growth of production.
The investments will increase the production capacity of the Finnish Defence Forces' Explosives Centre. This requires the recruitment of additional personnel to the Centre's different sections in South and North Ostrobothnia. This has an employment effect of several dozen person-years. The decision will also enable investments by the domestic industry, which will mainly target Central Finland.
The industry can apply for investment support from the EU under the Act in Support of Ammunition Production (ASAP Regulation 1525/2023).
Finland's production capacity significant on the European scale
After the 1990s, European ammunition production was cut too low and the production of ammunition has therefore become one of the most important issues in Ukraine's battle to defend itself. The decision supports the EU's objective to increase European ammunition production to support Ukraine and responds to the growing long-term demand for ammunition.
- Finland has the largest artillery in Western Europe and in the future, Finland will also be one of the largest producers of heavy ammunition in Europe. With this decision, we want to show our long-term commitment to support Ukraine as well as strengthen the defence industry, Häkkänen says.
Inquiries: Senior Adviser Frans Peltonen, Ministry of Defence, tel. +358 295 140 021. Requests for interviews addressed to the Minister of Defence: Special Adviser Ville Sipiläinen, tel. +358 40 761 1558.