Finland will build a large factory for the production of explosives, said Defense Minister Antti Häkkänen.

According to the website of the Finnish Ministry of Defense, the plant will be located in Pori. The project cost exceeds EUR 200 million.

"I thought the best solution was to build a factory in Finland to strengthen the Finnish defense industry and supply security at the same time. This new production plant will respond to the shortage of explosives in Europe and the problems that this shortage causes in the production of ammunition. The project, led by the Ministry of Defense, will play an important role in increasing ammunition production in Europe. The investments will also allow Finland to continue supporting Ukraine in the long term," Häkkänen said.

During the year, the project received broad support from business, industry and international partners. For example, the state-owned capital investment company Tesi is considering an investment in the plant, the Defense Ministry noted.

The project will be carried out by Finnish explosives manufacturer Oy Forcit Ab. Minister Häkkänen authorized the Defense Forces to sign a letter of intent with Forcit for the purchase of TNT explosives on January 31, 2025. The letter of intent was signed on January 31, 2025 and will allow Forcit to invest in a new plant in Pori. Along with the plant in Poland, the new plant in Pori will become the second TNT explosive production plant in the EU.

At the next stage, the Ministry of Defense will make a purchase decision, and Forcit will make an investment decision.

The total cost of the purchase, excluding value-added tax, is estimated at at least EUR 255 million, which will cover the need of the U.S. Armed Forces for TNT explosives in 2028-2037.

TNT, or trinitrotoluene, is an explosive used in artillery and mortar ammunition. The demand for TNT has significantly increased due to the Russian Federation's war against Ukraine.