NATO signs $1.2 billion contracts for 220,000 155-mm artillery shells to replenish allied supplies

Europe, News January 26, 2024 , by IRIA No Comments

NATO Secretary General Jens Stoltenberg and General of the NATO Support and Procurement Agency (NSPA) Stacy Cummings concluded $1.2 billion worth of contracts for buying 220,000 155-millimeter artillery ammunitions.

The NSPA general manager signed the contract for purchasing 155mm artillery shells, which would enable NATO Allies to acquire, operate, and maintain critical capabilities for their security.

NATO Secretary General Stoltenberg welcomed the Allies’ commitment to making major new investments in ammunition and said that the contract “demonstrates that NATO’s tried and tested structures for joint procurement are delivering.”

Stoltenberg stressed that “Russia’s war in Ukraine has become a battle for ammunition, so it is important that Allies refill their own stocks, as we continue to support Ukraine.”

The NSPA General Manager Stacy Cummings said during a press conference, “As the lead organization for acquisition, support, and sustainment, NSPA provides effective multinational solutions for NATO Allies and Partners. This enables economies of scale and reduced logistics footprint under the benefits of a proven legal framework.”

We will support a coalition of @NATO Nations with 1.1 BEUR multinational contracts for 155mm #ammunition.

With these new contracts, we support NATO’s deterrence and defence capabilities while replenishing stocks in #Europe and across the Alliance.

👉 https://t.co/hnseYqRBDc pic.twitter.com/Q5yqJW3BR4
— NATO Support and Procurement Agency (NSPA) (@NSPA_NATO) January 23, 2024

Cummings highlighted that “Through our collaborative efforts, we bolster NATO’s deterrence and defense capabilities while paving the way for innovative approaches to replenish stocks of ammunition, weapons systems, and equipment across the Alliance. Multinational contracts provide a clear demand signal to industry to invest in robust supply chains capable of delivering against new and urgent requirements.”

Last year, NATO defense leaders raised concerns about production capacity shortages that result in increased delivery times and prices for equipment and ammunition. NATO defense officials have urged for a boost in defense production to ensure the supply of weapons and equipment. The Allies have also taken several steps to replenish ammunition stocks and enhance military mobility.

After the Allies endorsed the new Defence Production Action Plan at the Vilnius Summit in July 2023, NATO’s Land Battle Decisive Munitions program is focused on increasing ammunition production and aggregating demand. The NSPA has agreed on contracts for about $10 billion worth of ammunition.

*^{Ukrainian troops prepare conventional artillery shells for a 155mm M777 Howitzer on the front line near the eastern town of Bakhmut, on March 11, 2023. (Image Credit: Aris Messinis/AFP/via Twitter)}*

NATO’s Defence Production Action Plan aims to aggregate demand, address defense industrial capacity, and enhance interoperability and material standardization. NATO Allies are pacing efforts to increase ammunition stocks and seek to acquire a wide variety of critical munitions, including 155mm artillery shells, anti-tank guided missiles, and main battle tank ammunition.

The NSPA has recently approved purchases of 1,000 Patriot missiles for $5.5 billion, and 155-mm artillery, anti-tank guided missiles, and tank ammunition for $4 billion. In November 2023, NATO’s procurement agency also decided to purchase six E-7A Wedgetail aircraft with a contract to be signed in 2024.

According to the NATO statement, “These record-breaking contracts demonstrate the capacity of the transatlantic defense industry to enhance NATO’s deterrence and defense and to support Ukraine.”