Nammo and Santa BÃ¡rbara Sistemas reach agreement for takeover of the Palencia factory
Posted on 2012-11-29
Palencia, November 29, 2012 -Santa Bárbara Sistemas, S.A., which is operated as part of General Dynamics European Land Systems (GDELS-SBS), and Nammo AS have reached an agreement for the purchase of the Palencia operations of GDELS-SBS specializing in the manufacture of various types of ammunition.
As the agreement provides, Nammo will assume Palencia´s existing workforce, assets, operations and production lines.
The completion of the acquisition is subject to the approval by the Spanish Ministry of Defense, which leases the Palencia site and factory to GDELS-SBS, and other regulatory approvals.
Nammo Palencia will be managed as a self-contained entity and profit center within the Nammo Group.
The Managing Director of GDELS-SBS, Carlos Villar, stated: “the transaction will help assure the future stability of the workforce at Palencia.The Nammo Group’s purchase of the Palencia operations and facility will also help ensure that technological capabilities remain in the hands of one of the most important companies in the sector that adds new possibilities, thereby assuring support and backing for the needs of the Spanish Ministry of Defenseand their allies”.
The President and CEO of Nammo, Edgar Fossheim, added “the Palencia operations have good synergy to parts of the Nammo Group and will also be an important supplier to several operations of the Group. It is the overall intention of Nammo to maintain and develop significant manufacturing and business operations based in Spain, aimed at both the domestic market and export markets globally.
Headquartered in Norway, Nammo Group is a technology driven aerospace and defense group specializing in high end products. The core business is the development, production, and sales of military and sports ammunition, shoulder fired weapon systems, rocket motors for military and space applications, and global services for environmentally friendly demilitarization. Nammo has 2.000 employees and is present in 8 countries with 18 production Sites. Please visit www.nammo.comfor further information.
About General Dynamics European Land Systems Santa Bárbara Sistemas
Santa Bárbara Sistemas, which is operated as part of General Dynamics European Land Systems,has approximately 1,600 workers and sevenSites in Spain, and is the main supplier of combat vehicles and artillery systems for the Spanish Army. Its products are sold in 50 countries. For more information please visitwww.gdels.com.