​Job done – after ten years, Europe´s cluster munitions are all but gone

Industry is adapting as one of the world’s most successful demilitarization programs winds down.

In 2008, 107 nations came together to ban the production, storage and use of cluster munitions. Ten years later, Europe’s stocks of the banned munitions are all but gone, following the destruction of thousands of aircraft bombs and artillery shells in one of history´s most successful demilitarization efforts.

“Demilitarization isn’t easy, especially cluster munitions. Every bomb or shell we have handled has contained dozens, sometimes hundreds of deadly submunitions, each with their own fuse that had to be made safe and then removed. It has been difficult and sometimes even dangerous work, and the efforts of our technicians have been truly outstanding,” said President and CEO of the Nammo Group, Mr. Morten Brandtzæg.

Changing with the market

Since the convention was signed in 2008, Nammo has destroyed or dismantled more than a million cluster weapon submunitions, along with thousands of other Cold War-era bombs, rocket and shells. Today, Europe’s stocks of cluster munitions as well as ammunition left over from the Cold War are both nearly empty, which in turn has consequences for the industry that has helped make that a reality.

“When the needs of our customers are changing, it goes without saying that we have to adapt accordingly. Nammo has grown significantly since we were formed 20 years ago, and we are really proud of what we have done in demilitarization, but it is clear that the market is moving into a new phase,” said Mr. Brandtzæg.

At its peak, more than 150 people were involved in Nammo’s demilitarization work in three different facilities located in Germany, Sweden and Norway. Today, demilitarization involves less than 50 of Nammo’s 2300 employees, and has reached the stage where it is no longer cost effective to maintain as a separate business unit. Consequently, Nammo has decided to organize its remaining demilitarization activities under its business unit for Small and Medium Caliber ammunition.

“We still see a future for Nammo’s demilitarization services, but we believe the market is looking for a much more specialized service rather than the industrial scale operations of the past decade. Our niche has always been to provide safe and efficient demilitarization with minimal environmental impact, and by organizing it within Small and Medium Caliber Ammunition, we will be able to do so without the overhead costs of a separate business unit,” said Mr. Brandtzæg.

Adapting Nammo’s footprint

In response to the changing demilitarization market, Nammo is also adjusting its physical footprint, which today consists of more than 30 sites and office in 14 countries. 

The facilities most directly affected include those belonging to one of Nammo’s German subsidiaries, Nammo Buck GmbH, which have been heavily involved in the demilitarization of cluster munitions. The company has already been scaling back the work force at its facilities in Pinnow and Storkow as the market has contracted. It will now have to reduce its numbers even further, with the remaining employees being concentrated at the Storkow facility, with the larger facility in Pinnow closing.

The changing market also indirectly adds pressure on some of Nammo’s other smaller facilities. This includes the facilities in Sweden, where Nammo is currently present in four locations – Vingåker, Karlsborg, Karlskoga and Lindesberg. After a thorough review, it has been decided to discontinue all production for defense customers at the Lindesberg facility, and to move that production to other Nammo-facilities.

“It is not often that we change our physical footprint like this, so this is not a decision that we have taken lightly. It also doesn’t change the fact that both Germany and Sweden have been, and continue to be among our key markets, and host some of our most important production facilities. We fully intend to keep it that way, and believe that these changes will strengthen both our long-term profitability, and our ability to deliver what our customers need in the future,” said Mr. Brandtzæg.

Nammo as of May 2018