Funding Awards

Chemring notes the announcement made by the European Commission regarding its allocation of funding in support of boosting defence production within Europe, and we welcome its public announcement of awards totaling €66.7m (£57m) made to our Norwegian subsidiary, Chemring Nobel.

These awards, which are part of the Act in Support of Ammunition Production ("ASAP") programme, are a direct response to the European Council's call in March 2023 to urgently deliver ammunition, and missiles if requested, to Ukraine and to help Member States refill their stocks by introducing targeted measures. This Regulation aims to strengthen the responsiveness and ability of the European Union's defence industry to ensure the timely supply of ammunition and missiles in Europe, and includes measures to support production capacities and tackle identified bottlenecks throughout the industrial supply chain.

Further information can be found on the European Commission website: https://defence-industry-space.ec.europa.eu/eu-defence-industry/asap-boosting-defence-production_en

Chemring is also pleased to report that it has received further grant funding of 428 million NOK (£32m) from the Government of Norway. This co-financing will boost capacity and production at Chemring Nobel and will significantly strengthen Norwegian production capacity for critical defense products.

Further information can be found on the Norwegian government website: https://www.regjeringen.no/no/aktuelt/milliardstotte-til-norsk-forsvarsindustri/id3029866/.

Grant agreements are expected to be signed over the coming months.

Both grants support Chemring's decision to invest in doubling the capacity of this facility over the medium-term, and reinforces Chemring Nobel's position as a key strategic supplier to NATO.