Portugal to revive ammunition production through FN Herstal joint venture

By Reuters News

LISBON, Sept 29 (Reuters) - Portugal's state-owned company idD Portugal Defence and Belgian firearms maker FN Herstal signed a deal on Tuesday to build a small-calibre ammunition factory, restoring Portuguese ammunition production after nearly three decades, Defence Minister Nuno Melo said.

  • The factory, to be developed through a joint venture, will involve an investment of €50 million ($57 million) and is expected to become operational in 2029, Melo said

  • Portugal expects to hold a minority stake of about 35% in the venture

  • The deal falls within the framework of the European Union's SAFE programme, under which Portugal has access to roughly €5.8 billion in European loans to acquire military equipment and develop domestic industrial capacity

  • It is the third project financed through the SAFE programme, following Portugal's acquisition of three Fincantieri frigates for €3.9 billion and 75 tactical vehicles for the Marine Corps worth €133 million

  • The factory "will bring back to the country a fundamental capability that we should never have lost", Melo said

  • FN Herstal is part of the FN Browning Group, which already has a manufacturing facility in Viana do Castelo in northern Portugal that produces hunting and sporting firearms.

($1 = 0.8816 euros)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.