EURENCO, a European leader in energetic materials, and Saab, a global defense and security company, announce the signing of an amendment to their long-term agreement, marking a decisive new step in their cooperation.

The amendment will enable EURENCO to invest in a significant increase in its production capacity for double-base powders and octogen-based explosives, which are essential for Saab’s Ground Combat portfolio, including the weapon systems Carl-Gustaf, AT4 and NLAW.

This strategic project is jointly funded by EURENCO, Saab and the European ASAP (Act in Support of Ammunition Production) program, and will double the current production capacity for these energetic components by 2027.

As a long-standing supplier to Saab and, for example, the Carl-Gustaf weapon system, EURENCO has been supporting Saab for over 40 years with the supply of high-performance propellants and explosives. This historic partnership is thus strengthened by a shared long-term vision and concrete industrial investments.

Thierry FRANCOU, CEO of EURENCO, said: “This strengthening of our industrial capabilities illustrates EURENCO and SAAB’s joint commitment to securing critical supply chains, supporting European strategic autonomy and sustainably meeting the operational needs of our customers.”

Görgen JOHANSSON, Head of Saab Dynamics, added: “This extended partnership with EURENCO is an important step to secure future ammunition supply for the Ground Combat portfolio. It demonstrates our joint commitment to resilient and scalable production, supporting both current operational needs and long-term readiness across our user nations”