Northrop Grumman embarks on historic ammunition venture in Ukraine

American defence giant Northrop Grumman intends to begin ammunition production on Ukrainian territory, as the Ukrainian portal Militarnyj reported. This marks the first contract between the Ukrainian government and the American weapons manufacturer.

According to announcements, the contract includes the production of medium-calibre ammunition. "We’ve been working, as you know, in Ukraine to produce medium. That’s our first project that’s paid for with Ukrainian dollars. We are looking to expand that into tank ammo, 155 mm, others as we find innovative processes" stated Dave Bartell, director of international business relations in the defence systems sector at Northrop.

The agreement between Bartell and Stanley Brown, a representative of the Department of State, was concluded during the Eurosatory arms fair, which took place from June 17 to 21 in Paris, the Ukrainian portal reported on Thursday. Bartell did not present a detailed co-production plan, and Northrop declined to comment on the matter.

An American official noted that under the new Ukraine Defense Enterprises Program, carried out by the Department of State, the Ukrainian armaments industry will receive investments of $2 billion. According to him, this could pave the way for US-Ukrainian cooperation in weapons production.

So far, the United States has supported Ukraine by focusing on the production of American weapons in NATO member companies in Central Europe. For example, last year, a contract was signed between Lockheed Martin and Raytheon for the production of Javelin anti-tank missiles in Poland.

However, in recent months, the US government has decided to increase efforts for direct cooperation with the Ukrainian defence sector. Northrop Grumman Corporation is considered one of the world's largest weapons manufacturers and suppliers of military technology. The company also operates in the electronics, IT, shipbuilding, and aviation industries.

In 2023, the United States signed a contract with Northrop Grumman worth $522 million to produce ammunition for Ukraine. Notably, this is not the first contract the Ukrainian government has made with foreign defence companies planning to open their enterprises in Ukraine. In early June, German Rheinmetall confirmed opening a production plant for Lynx Infantry Fighting Vehicles in that country. The enterprise is set to start operations "in the near future" and will produce artillery ammunition.

Additionally, in the same month, the Franco-German manufacturer KNDS and the Ukrainian company KZVV signed a contract to produce 155mm artillery shells in Ukraine.