- Chemring Group
- 10 October 2024 10:16:28
Source: Sharecast
The FTSE 250 company said the initiative was part of broader efforts by Norway to bolster its defence industry following Russia's invasion of Ukraine.
It said the Norwegian government had already co-funded a £32m investment, alongside the European Union, to more than double Chemring Nobel's existing production capacity.
The feasibility study, which was expected to conclude by the end of the year, would examine key factors such as location, infrastructure, and environmental considerations for the new facility.
It would also assess the Norwegian government's potential financial contribution.
With growing demand for military explosives like HMX, RDX, and NTO, and Chemring Nobel being one of only two European manufacturers of advanced military explosives, the project was described as vital to the defence needs of NATO and European allies.
“Today's announcement is a clear indicator of the need to rapidly increase capacity across the defence industrial base to counter the numerous threats faced by NATO and its European allies,” said chief executive officer Michael Ord.
“We are grateful to the support being provided by the government of Norway and look forward to working closely with them on this important project.”
At 0954 BST, shares in Chemring Group were down 0.68% at 365.01p.
Reporting by Josh White for Sharecast.com.