(Alliance News) – Chemring Group PLC announced Thursday that the Norwegian government intends to co-finance a feasibility study as part of the country’s efforts to increase the production capacity of the national defense industry.
Based in Hampshire, England, the company is a provider of technology products and services to the aerospace, defense and security markets.
Chemring’s Norwegian subsidiary, Chemring Nobel, will receive £32 million from the Norwegian government and the EU to explore the development of a new production facility. The facility is expected to more than double the capacity for producing military explosives compared to the current location.
The feasibility study will examine the geographical location, infrastructure requirements and environmental aspects for the construction of the facility and is expected to be completed by the end of 2024.
The new production facility is just one component of the Norwegian government’s current efforts to strengthen its defense industry, as it has found that European production of high explosives is “significantly below” growing needs.
Norway’s Defense Minister Bjorn Arild Gram said: “We consider the production of military explosives to be the Norwegian defense industry’s most important contribution to the needs of Ukraine and allied forces. Chemring is one of only two major manufacturers of advanced military explosives in Europe and, in our opinion, the only manufacturer in Europe and North America, which can quickly build higher production. “The production of Chemring is crucial for the West to continue supporting Ukraine with weapons. This joint study is the key to unlocking further capacity in the supply chain.”
Shares in Chemring fell 1.5% to 362.00 pence in London on Thursday morning.
By Emily Parsons, Alliance News reporter
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