Europe's ammunition surge faces supply chain challenges
European ammunition production is operating at full capacity. The European Union plans to increase ammunition production capabilities to 2 million rounds annually by the end of 2025. However, increased production has depleted stocks of components such as gunpowder and TNT.
In March of last year, the EU launched a programme to increase ammunition production capabilities to 2 million rounds annually by the end of 2025. The EU allocated £418million. Norway, which is not an EU member but is integrated with the Community through numerous programmes, contributed an additional £10million to the fund.
Brussels allocated £207million for the production of gunpowder and another £103 million for explosives. The EU will allocate £75million for ammunition production.
European ammunition producers are intensifying efforts to secure supplies of chemicals and cotton, preparing for a significant increase in demand for explosives and propellants, writes Bloomberg.
Increased production of artillery shells, rockets, and bullets has led to the depletion of stocks of gunpowder, TNT, and other explosive and propellant materials on the continent.
Gunpowder production
European companies are steadily increasing production. Germany's Rheinmetall plans to boost gunpowder production by over 50% by 2028, yet even that may not be sufficient.
The entire European Union intends to increase explosive materials production by over 4,300 metric tonnes, which represents more than a 30% increase.
Currently, there is only one large TNT factory in the region operated by Nitro-Chem in Poland, with another one planned in Finland.
Manufacturers of alternative materials, such as PETN, HMX, and RDX, used in explosives are overwhelmed, Bloomberg indicates. Norwegian company Chemring Nobel has experienced unprecedented demand since the Russian invasion of Ukraine. The company informs the agency that its operations in Norway are running at full throttle, with its order book filled for many years.
Bottlenecks
Just as explosives and propellants present bottlenecks for arms manufacturers, gunpowder and TNT producers also face constraints in their supply chains.
Some European countries, such as Germany, the Netherlands, Belgium, and Poland, have well-developed chemical industries, yet precursors for explosive materials represent only a small percentage of their production capabilities, according to the German Chemical Industry Association VCI.
High energy costs and environmental protection regulations make chemical production abroad more profitable, which is why many companies are currently sourcing precursors, such as nitric acid, from China.