Denmark buys a bankrupt munitions factory

Denmark bought a bankrupt munitions factory to resume arms production amid the Russian-Ukrainian war.

Troels Lund Poulsen, Danish Defense Minister, announced this in a press release.

“Russia’s invasion of Ukraine, which has been ongoing for a year and a half, has put enormous pressure on ammunition production in Europe and highlighted the need to resume it in Denmark,” Poulsen said.

Poulsen emphasized that the investment was a strategic endeavor of the government. At the same time, he made it clear that it would take some time before production would be launched.

The defunct Denex facility in Elling consists of 50 buildings on an area of 18,000 square meters and was bought by the Danish Ministry of Defense’s real estate agency for € 2.6 million.

Sale of the factory

Denmark sold the AMA factory, founded in the 17th century, in 2008 for € 2.41 million to the Spanish ammunition manufacturer Expal. The factory continued to produce weapons and provided services to the country’s Ministry of Defense as one of its main customers.

This lasted until 2020, when, after several years of losses, EXPAL decided to close the facility and liquidate it completely. The site and the remaining infrastructure were sold to a group of private investors who decided to reorganize the area into a technology park.

The closure of the factory actually meant not only the liquidation of an important and historic local enterprise but also the termination of ammunition production in Denmark.

Resumption of production

The specific timeframe for the resumption of production or details of the types of ammunition planned for launch are not yet known. However, there are references to the production of 155 mm artillery ammunition.

Denmark actively supports Ukraine with military supplies and is a regular donor of artillery ammunition.

In June of this year, together with Norway, the country handed over nine thousand 155 mm artillery rounds. In addition, in early October, Denmark allocated more than $14 million for a program of joint purchases of ammunition for Ukraine by the EU countries.