s e c u r i n g t h e f u t u r e

bulletinbulletin 2012

lead-Free Ammunition

new Motor Case Factory

nammo Raufoss test Center

Arms trade treaty

insideEditorial 3

Improved5.56mmlead-freeammunition–NM255 5

MajorContractforLead-FreeAmmunition 6

LapuaRimfireServiceCenter 7

Japan:AGameofTwoHalves 8

40mmAirbursttoCanada 9

AWorldLeaderinPerformingTestTechnologies 10

NewPlasticTrainingAmmunition 11

SoldierSolutions–HandGrenades 12

InitiationSystems 13

HybridandMonopropellantRockets,CooperationwithESA 14

NewMotorCaseFactory 15

SupportingandImprovingInternalProductionProcess 16

NewManufacturingOperation 17

DonationsandContributions 18

LivingtheValues 19

ArmsTradeTreaty 20

AwardtoNammoBakelittfabrikken 21

NammoVanäsverkenrated’VeryGood’byUSGovernment 21

NewOfficeinAustralia 21

Locations 22

EDITORIAL

NAmmO IN bRIEf

‘Defense budget Cuts’, ‘Severe Financial Difficulties in Several european Countries’, ‘national leaders Forced to Step Down’ – these are some of the headlines in the news over the past months. the market is changing in a highly competitive world. For nammo, it all remains a question of Precision. Meeting our company goals requires strict focus on making sure from the very start that our projects are carried out and completed in the right way. to secure new contracts and increase our sales in a shrinking market, we will continue to improve our operations with focus on the elimination of waste and on flawless production. We wish to achieve better performance each and every day, by striving for top performance in every aspect of our business. by working closer and collaborating across the different business areas, we take advantage of the great synergies within the Group.

the nammo Group has a strong company culture based on our three values: Dedication – Precision – Care. A strong company culture is crucial in a competitive world. We may be a relatively small Group, but we are lean and efficient. this was recently shown by the speed in which we managed to develop a brand new version of our lead-free small arms ammunition, the new nM255. We always comply with customer requirements, but the lead-free ammunition case in norway has shown us that, in some situations, compliance may not be enough. We are proud to have resolved a difficult situation within a short period of time and in good cooperation with competent partners, which resulted in a new product with improved performance for the customer.

it is important for the defense industry to take the environment into consideration. this is important not only for the surrounding environment, but also for the public, all our employees, and the users of our products. by improving the accuracy of our products, we lower the risk of collateral damage, and thus we can honor our commitment to the com-pany vision of “Securing the Future”.

if you want to read more about our products, technologies and the company then just turn this page and continue reading.

The Nammo Group, headquartered in Raufoss, Norway, is a technology driven aerospace and defense group specializing in high-end products.

CoRe buSineSSthe core business of the nammo Group is the development, testing, production andsale of military and sport ammunition, shoulder launched weapon systems,rocket motors for military and space applications and leading global services forenvironmentally friendly demilitarization.

oRGAnizAtionnammo is present in eight countries with a total of 19 production sites and four salesoffices.

By sissel solum, senior Vice President Communication, nammo Group

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By Peter Hedsand, Marketing Manager, small Caliber division

When the norwegian Armed Forces adopted a new assault rifle, a number of health issues were reported in connection with firings of the lead-free ammunition on indoor shooting ranges. An investigation done by FFi (norwe-gian Defense and Research establishment) showed increased levels of copper and zinc when using nammo lead-free ammunition in comparison with traditional lead ammunition. the health issues consisted of irritated air-ways, coughing, fever, cold sweats, headache, nausea and body pain.

After a couple of years of studies conducted by FFi norway, Foi Sweden and nammo, the common understanding was that the health issues were probably caused by the combina-tion of several factors.

nammo and FFi started to develop a new car-tridge with the design objective of minimizing health risk. the goal was to continue fulfilling the applicable military specifications, while producing a projectile with greater perfor-mance. Various combinations of powders, primers and projectiles were evaluated in re-lation to emissions and ballistic performance.

Design objectives covered requirements such as accuracy, terminal ballistics and barrel erosion. A large number of test firings took place with the different designs at FFi and nammo. one of the designs was finally selected and evaluated through live firings on indoor and outdoor ranges.

the selected cartridge design fulfills all mili-tary requirements, nevertheless has a better performance in comparison with the SS109, with a minimized impact on the environment and user health. the health risk for the user is minimized by the reduction of emissions, with copper and zinc emissions not higher than that of the 5.56 mm nAto SS109.

nammo has started delivery of the ammuni-tion. initial user feedback tells us that the ammunition functions perfectly. the improved ammunition has been given the design number nM 255 by the norwegian Armed Forces.

ImpROvED 5.56mm LEAD-fREE AmmuNITION – Nm 255

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LApuA RImfIRE SERvIcE cENTER mAjOR cONTRAcT fOR LEAD-fREE AmmuNITION

top competitive shooters require not only high-quality repeatable ammunition, but am-munition that, for very subtle reasons, works well with each individual’s firearm. the only way to find out if a particular firearm and a specific lot of ammunition work well together is to test them together. unfortunately, that is usually very difficult since the ammunition is at the manufacturer or distributor’s ware-house, while the gun and shooter are some-where else. the new lapua Rimfire Service Center in Mesa, Az changes that for shooters who are serious about finding the right match. lapua maintains a certain amount of rounds of rimfire ammunition available for top shooters to test with their firearms on a new 100m rimfire test range.

With the Grand opening in April 2012, the lapua Service Center (lSC) is the corner-stone of the rejuvenated, uS Rimfire market-ing program. this state-of-the-art facility features the Meyton electronic Accuracy measuring system with targets at 50 and 100 meters for the most complete measurement of group accuracy available. Visits to the lSC are by appointment only. the staff will help match competitive shooters and teams with the best lapua ammunition for their firearms.

in conjunction with the norwegian Armed Forces and the norwegian Defense Research establishment, nammo has developed a new, improved, lead-free ammunition that will be used, among others, in the norwegian Armed Forces’ automatic rifle, the HK416. this is a multi-annual contract, with production to be carried out at nammo’s production facilities in Karlsborg, Sweden.

FoR tHe beneFit oF tHe SolDieR AnD tHe enViRonMentthis new type of ammunition, nM255, emits lower level of suspended dust particles and exhaust gasses. Most importantly, it does not expose the soldier to harmful lead gases. “We have developed new, improved, lead-free ammunition of world class quality. For nammo, it is important to be at the forefront of future environmental requirements and to develop products that are less harmful to the health of the users, and cause less damage to the environment,” said Peter Ambjörnsson, President of nammo Vanäsverken in Karls-borg.

the development of this new ammunition began shortly after the first report of health complaints appeared at the end of 2008. the development of new defense products usually takes up to ten years, but in this case, it has taken only one third of that time to develop and start producion of the new ammunition.

“norwegian politicians and the Chief of Defense have been behind the sensible initiative to replace lead ammunition, to the benefit of the soldiers and the environment. We have been highly motivated by this initiative. this has also meant that we have succeeded in developing the new version of the ammunition in record time,” said Ambjörnsson.

Many thanks to the team at nammo tactical Ammunition at nammo talley for their coope-ration in making the lapua Service Center come to reality in such a short time frame.

A well-appointed shooter’s lounge is available for customers during testing. From a video monitor, they are able to view the testing in real-time and then select the proper lots of lapua ammunition that best fit their system. Among those who have already expressed interest in the lSC are the members of team lapua, the uS Army Marksmanship unit, as well as highly-ranked university teams, and top individual and association shooters. Guests are not limited to the uSA; interna-tional teams from countries throughout the American continents are expected to visit from time to time.

the Grand opening featured members of team lapua, prominent media representa-tives, and partners from our importing distributors.

the lapua Service Center complements the existing facilities in Schönebeck, Germany and in lapua, Finland. evaluations are being conducted of potential future sites for service centers that would be convenient places for competitive shooters to test firearms with the lapua line of ammunition.

By Kevin Thomas, sales & Marketing Manager, nammo inc • Bruce Webb, Vice President specialty Ammunition, nammo inc • Adam Braverman, Business and sales Manager, nammo inc

By sissel solum, senior Vice President Communication, nammo Group

the new Lapua rimfire service center Debuts at nammo tactical Ammunition in Mesa, Arizona, usA

the norwegian Armed forces has selected nammo as the main supplier of lead-free small arms ammunition, a contract worth close to $ 100 million, plus options. “We are proud to supply world-class ammunition that is both environmentally friendly and fully satisfies the customer’s demands for operational function,” stated edgar fossheim, President and ceO of nammo.

Pete Sioma (President Nammo Inc), Scott Selle (President Nammo Talley) and Raimo Helasmäki (Executive Vice President Small Caliber Division).

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40 mm AIRbuRST TO cANADABy Christian Johnsen, Project Manager, Medium & Large Caliber division

the Government of Canada awarded a contract valued at $95 million to Rhein-metall Canada for the acquisition of 304 C16 Automatic Grenade launcher Systems under the Close Area Suppression Weapon (CASW) project.

the C16 Automatic Grenade launcher System is a modern high-velocity 40 mm weapon system, which has multiple interrelated components that include a ‘grenade machine gun’ and an advanced Fire Control System (FCS). the FCS, which has direct and indirect firing capability, is also equipped with full GPS and laser range finder. the C16 system also includes a ground mount group (cradle and tripod), a thermal weapon sight, as well as multi-purpose and airburst ammunition.

nammo has been the sub-supplier of HeDP ammunition and airburst ammunition to Rheinmetall Waffe Munition.

nammo has now fulfilled the contract and delivered the 40 mm HeDP rounds (C172) as well as the 40 mm RF airburst rounds (C171) to Department of national Defense, Canada. We have also delivered 304 RF fuze setters integrated to the C16 weapon system. the total value of the contract to nammo is 54 million noK.

this means that Canadian forces have selected the nammo RF solution for pro-gramming airburst ammunition. they have now 304 weapon systems that will require RF airburst ammunition from nammo in the future.

jApAN: A GAmE Of TwO HALvES

Previous issues of bulletin have covered the importance of cluster munition disposal, the oslo Convention and nammo Demil’s capabilities in support of this important legislation.

to remind you, the convention (often referred to as the oslo Convention) was signed in December 2008 by 109 countries. it calls for destruction of all cluster munitions with a target completion date of 2018.

Disposal of cluster munitions is techni-cally more demanding than the disposal of conventional munitions. However, the Demil Division is well positioned to meet or exceed these demands through our sites in Germany and norway.

Doing business in Japan is unlike any of our traditional or target markets. the prequali-fication process took over 2 years, with

multiple customer visits to our sites, which was only one half of the process.

in nearly all cases of import and export, foreign companies are expected to work through government-approved trading houses. in the lead up and prequalification period, we were fortunate to sign up with one of the best. the Japanese Ministry of Defense (MoD) also ran an identical capability competition for domestic processing, so we had to beat credible european competitors and domestic companies that all wanted the contract. through persistence and market positioning, nammo was selected as the most credible offshore contractor, so we were 1-0 at half time.

the second half was a very complicated negotiation process that was conducted only in Japanese, following very strict guidelines designed to guard against bribery or corrup-

tion. During the process, more than 40 people from the Japanese government were involved, and our choice of trading partners proved to be a match winner. in August 2010 we were awarded the contract from Japan to dispose a significant quantity of cluster munitions.

i mentioned that this was a game of two halves. the award of the contract in the sec-ond half was followed by three main activities:· logistics and packing in Japan by our trading house· Delivery to europe (avoiding pirates) by ePC (exchem)· logistics and disposal by nammo

So in closing, this is a contract that would not have been possible without the dedication, precision and care of our staff, our logistics contractor and our trading house. A good team effort with a great away win!

By Brian Jeffers, Marketing director, demil division

C16 Weapon System40mm x 53 C171 PPHE-RF

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NEw pLASTIc TRAINING AmmuNITION By Trond Bergerud, sales and Marketing Manager, Medium & Large Caliber division

neW FiRinG RAnGenammo bakelittfabrikken AS has been situated in Aurskog for about 50 years. During that time all .50 cal machine-gun firings were carried out outdoors. there is no doubt that this created a lot of noise in the surrounding area.

in the first half of 2011, a decision was made to build a new firing range facility. the new building consists of three indoor firing ranges, one range for firing .50 cal up to 150 m and two ranges for firing small calibers (one 25 m range and one 10 m range). there are also new offices and technical installa-tions for the Quality Assurance Dept.

by constructing an indoor firing range facility, we have reduced the noise and significantly improved the environmental conditions.

the new firing range was handed over by the builder to nammo in March 2012.

neW PRoDuCtSnammo has developed two new products, which are both in the final stage of the qualification:

· 4.6 mm Plastic blank Ammunition· 5.56 mm Plastic Short Range training Ammunition

the 4.6 mm Plastic blank Ammunition was developed in norway for use with the new MP7 submachine gun. nammo has a contract for delivery of this ammunition, with series production scheduled to start in the 2nd quarter of 2012. A new production line for this caliber was installed and then qualified in February 2012.

the 5.56 mm Plastic Short Range was developed for target practice training at distances up to 50 meters. the final qualifi-cation of the round is scheduled to take place during spring 2012, with series production scheduled to start in 2nd quarter of 2012. the first customer to acquire this product is the norwegian Armed Forces.

A wORLD LEADER IN pERfORmING TEST TEcHNOLOGIESBy Trond Aasmundstad, Manager Test Center, Medium & Large Caliber division

today, most products are designed and tested using computer simulations. but when it comes to verification of the calculated data, nothing can replace physical tests on the hardware itself. live test firing is still the most precise method to verify that advanced military equipment meets the strictest re-quirements.

Since 1918, bradalsmyra has been the center for live test activities at Raufoss. today the bradalsmyra test Center covers an area of 4 km2. this area is divided into 15 firing ranges with a maximum firing distance of 2000 meters.

the test Center has test and recording sys-tems for almost any test purpose. At the core of operation are the measuring techniques for ballistics, such as: what happens inside a gun or a rocket during 1 micro second, how does the product behave during flight, what is the effect inside the customer/nAto specified target?

to verify these data we utilize: · High speed film cameras (up to 1,000,000 frames/sec) · Radar (from 0.5 to 60 watts)· A number of data acquisition systems, custom built by our in-house engineers· other systems, such as flash x-ray, video systems, etc.

For verification and test purposes, the test Center maintains approximately 70 different weapons, including test guns (custom built for internal ballistic measurements) and operational guns (identical to the systems fielded with the soldier or installed on plat-forms such as vehicles, aircraft and ships) ranging from 4.6 to 155 mm and with muzzle velocities exceeding 2500 m/s.

over the past 50 years the test Center has developed a complete range of environ-mental simulation facilities. Four electro-magnetic systems are employed to conduct vibration and shock tests, including the lDS V994 machine, which is the world’s largest electromagnetic vibration machine and one of very few world-wide that is certified to test energetic products. Climatic conditions are simulated using a variety of chambers.

Advanced equipment and facilities require a highly competent staff. All employees at the Bradalsmyra Test Center are specialists within their fields of expertise, with up to 40 years of experience in the testing of defense equipment or high-tech civilian products.

5.56 mm Plastic Short Range Ammunition developed for Norwegian Armed Forced.

4.6 mm Plastic Blank Ammunition. Developed to be used in MP7, Sub Machine Gun from Heckler&Koch.

Test of 120mm ammunition with Leopard 2Test of HATM missile which resulted in world record with a speed of Mach 6,7.

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INITIATION SySTEmSBy Thomas Brandel, Technical director, Medium & Large Caliber division

Initiation Systems – nammo liAb’s newest product category! these products are basically non-electric detonators, which are commonly used in civil blasting operations, such as mining and quarrying.

HiStoRythe former joint venture between orica Mining Services and nammo liAb was named Norabel Ignition Systems. the idea was to take orica components and assemble the products according to military standards and design, thus combining orica’s experience in detona-tor and explosives technology with nammo liAb’s experience in sales to military units.

in 2010, orica sold off their shares to nammo liAb. All products are now nammo liAb products, a part of the Nammo Initiation Systems product group.

PRoDuCtSthe product is a non-electric detonator, with a percussion cap, signal conductor (shock tube) and the detonator. by initiating the percussion cap, a 2000 m/s shock-wave signal inside the shock tube is propagated into the detonator, which in turn detonates with just enough energy sufficient to initiate the attached explosives charge.

the products are utilized for eoD, cutting, demolition, fortification, as well as ordinary blasting operations.

PRoDuCt ADVAntAGeSthe initiation system is totally insensitive – and independent – of electric equipment and environment (static electricity, power lines, thunderstorms, or radio waves). it is easy to handle and the product kit includes all components for its use.

being classified as transportation class 1.4S makes it possible to transport by passenger aircraft. Since they are not specially designed to fit into weapon systems, these products are not classified as war materials.

AMbitionS FoR PRoDuCt DeVeloPMentWe have identified a need of detonator kits for special civilian applications. by designing these products for these special needs, we can easily increase sales. the products are Ce certified, providing access to the european civilian market. We also cooperate with special police and military forces to develop and design according to their requests.

the black shock tube, without visual flash from its shock wave signal, is a new develop-ment, a feature highly appreciated by military and police customers. this fulfills environ-mental classification requirements, providing access to a broader military customer area.

GReAt FutuRe PotentiAlthis small niche in the product portfolio has a great future potential! it is an excellent example of how a product segment can be de-veloped in cooperation with the users, result-ing in quick acceptance and good references for further marketing and sales activities.

SOLDIER SOLuTIONS – HAND GRENADESBy Olli Harju, Business Area Manager, Mortar & HG Products, Medium & Large Caliber division

nammo is a major player in today’s military munitions market, delivering high technol-ogy products to allies worldwide. nammos Vihtavuori plant in Finland has a long history of developing and manufacturing high-quality hand grenade products for military use. nammo’s selection of hand grenades in-cludes fragmentation, offensive, smoke, and training hand grenades, all with extraordinary performance and scalable effect for various targets. Special products are also available.

SCAlAble eFFeCtS AnD SuPeRioR FRAGMentAtionnammo hand grenade products are widely used in demanding conditions and various operations. to provide soldiers the ability to choose the desired effect for every mission and purpose, nammo has developed a series of concussion hand grenades of different sizes. by picking the right product, the user can maximize the effect and minimize collateral damage during the operation.

the basic products are small, medium, and large hand grenades with only pressure effect. these products are intended to be used in closed or semi-closed areas. in addition, the use of hand grenades of different sizes is made easy by providing modular hand grenades, enabling the user to change the size of effect during the task. nammo also produces fragmentation hand grenades with the best performance in the world. the pre-fragmentation technology used in all nammo hand grenades guaran-tees even fragment distribution and optimized fragment size and form. these key factors secure the excellent performance that can be found only in nammo hand grenades.

System safety of all nammo hand grenades is evaluated and tested according to applicable StAnAG requirements. the products are de-veloped in close cooperation with the users. in all of the products, the fuze technology and design ensure safety for the user throughout the whole life cycle of each product.

the hand grenades are part of nammo’s Sol-dier Solutions product group, which is aimed at providing the best equipment to modern soldiers operating in various international scenarios. Some of these high-quality hand grenades are produced in cooperation with the various production sites of the nammo Group.

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NEw mOTOR cASE fAcTORy By Tom snipstad, Program Manager, Missile Products division

this program is the largest investment in nammo’s history at Raufoss.

the production of steel motor cases for missiles will implement new technologies for nammo and provide even more oppor-tunities in the future.

the production of motor cases requires new machines. Some of them involve new tech-nology, including:

· Automatic washing machine for environmental-friendly alkaline cleaning of components· Custom-tailored welding machine for electron-beam welding· Pit furnace for heat treatment after welding· nDt equipment, with a custom-tailored digital X-ray machine and a bench for magnetic particle inspection of welds· Milling machine for final machining· Coordinate measuring machine

· equipment for pressure testing· Machine for shot peening

All machines and equipment have been ordered, with installation in the new factory scheduled to begin in June and continue until october 2012.

the new motor case factory represents a primary area of 2100 m2 for production and 300 m2 for technical installations.

Key elements in the planning process for the new factory have been lean production, personnel education and training for the new processes.

it will be a tight schedule to install the ma-chines and equipment and to qualify all new machines and processes before the startup of production. if the construction of the motor case factory runs according to schedule, the final takeover is planned for August 2012.

the first production lot of motor cases is planned to leave the motor case factory in the fourth quarter of 2012.

inVeStMentS in MeCHAniCAl DePARtMent in addition to the equipment in the new motor case factory, there have also been considerable investments made in the me-chanical department. the completed projects include: new induction heating, two new milling machines, an industrial CMM, and the rebuilding of an existing oven for hardening. A new oven for normalization and tempering has also been ordered, which is expected to be delivered at the end of April.

together we are building a new, sustainable, motor case factory.

Motor case factory, construction site as of 1 March 2012.

A new industrial CMM machine and two new milling machines installed and in operation in the mechanical department.

nammo invests 75 million nOK in a new factory for Motor case Production for the AMrAAM Missile Program

HybRID AND mONOpROpELLANT ROckETS, cOOpERATION wITH ESA By Jan-erik Rønningen, Technical Manager Hybrid Rocket Technology, Missile Products division and Turi Røyne Valle, Program Manager space Programs, Missile Products division

Since 2003, nammo Raufoss has been actively working on hybrid rocket propulsion technology. Hybrid rockets have several important advantages compared to traditional rocket motors, which makes them very at-tractive. First, a hybrid rocket engine does not have to contain any explosives or toxic propel-lants, making them virtually inert and green. this, in turn, saves costs and minimizes risk during transportation and handling. Secondly, a hybrid rocket engine can be throttled (thrust-regulated) or stopped on demand, and even restarted at will. All these features are difficult or impossible to achieve with a solid rocket motor. nammo has demonstrated all these capabilities successfully and efficiently. So successfully in fact, that it caught the at-tention of the european Space Agency (eSA).

in 2009, nammo received its first contract with eSA with the goal of investigating nammo’s hybrid propulsion technology in relation to the preliminary functional require-ments of an upper-stage attitude control and propellants settling system (SCAte) for eSA’s next generation Ariane 5 launcher, the Ariane 5 Mid-life evolution (A5Me). the A5Me will be a versatile heavy-lift launcher, which can place satellites with a mass of up to 12 tons into a geostationary transfer orbit (Gto). For the launcher, the keywords are high precision, safety, and flexibility on a system level as well as mastered recurring costs. these are features that are natural for hybrid propulsion technology. Recognizing this, eSA asked nammo to perform a study based on current state-of-the-art technology.

in less than one year, nammo executed propellant trade-offs with various combina-tions, and a multitude of system approaches designed to meet the A5Me upper-stage functional requirements. in 2009, nammo proposed to eSA that the liquid oxidizer of choice was high-strength hydrogen peroxide (H2o2), among other system features. Hydro-gen peroxide is a powerful oxidizer that is storable and green. it is also a monopropel-lant, which means that it can be used by itself to generate thrust simply by its decomposi-tion into hot gas when fed through a catalyst unit. Monopropellant thrusters are great for low and modulated thrust applications and repeated thrust pulsing, making them a natural candidate for high-precision ma-

neuvering, which A5Me requires. Whenever high thrust is required, the same hydrogen peroxide would be used, however by feeding the decomposed hydrogen peroxide into a combustion chamber containing a solid fuel (often a rubber compound). both propulsion techniques can be combined, in a natural and efficient way, into one propulsion package, fulfilling all the functional requirements in a green and simple system, while still keeping costs down.

in 2010, nammo initiated an eSA-funded hybrid-propulsion technology Readiness level (tRl) improvement program based on the proposed engines from the A5Me study. in less than one year, nammo executed 29 hybrid rocket firing tests and 20 monopropel-

lant thruster tests using hydrogen peroxide. All the tests were successful. then in 2011, nammo worked in close cooperation with Saab Dynamics underwater Systems (SDuS) and received two new contracts with eSA. one of the contracts was for a new tRl improvement program with special focus on optimizing and lifting the state-of-the-art of hydrogen peroxide-based monopropellant thrusters for A5Me use. the second contract was a three- year contract with the eSA Fu-ture launcher Preparatory Program (FlPP) with the goal of scaling up the current hybrid technology to a significantly larger scale. the scale-up will be focused on the development of a family of sounding rockets and a possible micro-launcher for small satellites, the north Star rocket system (see bulletin 2011).

Static test firing of a high performance hybrid rocket engine.

400 N H2O2 monopropellant thruster during static testing. Ariane 5 ME launcher.

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NEw mANufAcTuRING OpERATIONBy Brian Lundy, President nammo Composite solutions

in July of 2011, nammo Composite Solutions opened their new manufacturing operation in Salt lake City, utah. this site is three times the size of their previous location in Murray, utah. the nammo CS employees have enjoyed the additional parking, restrooms, and cafeteria space that was not present in the old location. the facility is a state-of-the-art composites manufacturing operation, which was designed to attract and support new customer projects. the timing of this new facility could not have been better, given the recent growth in the business base that nammo CS has experienced.

in october of 2011, nammo CS was awarded a major contract from Raytheon Missile Systems for the toW missile case. this ef-fort will result in the manufacturing of 4,000 units at a rate of 40 parts per day, with a potential surge to 90 parts per day. nammo CS will need to increase staffing by roughly 20 additional employees to support this ef-fort. nammo has also recently added several engineering and professional staff to support growth. in February we fabricated our first of four toW design validation test (DVt) units.

in addition to the defense business segment, nammo CS is forecasting a big year for our commercial customers, including two critical customers: Really Right Stuff and Cycling Sports Group. nammo CS is very busy sup-porting the growing product demands of our Really Right Stuff tripod customer, with a

forecast of more than three times 2011 sales, while also introducing an improved double-groove product. For Cycling Sports Group, we have an important product changeover to the new Cannondale Hybrid 32 and Hybrid 36 product lines. this iconic composite part is crucial to the business base and culture at nammo CS. being one of the few remaining American suppliers of mountain bike compo-nents serves to remind us that it is important to maintain a competitive edge.

We are also in the process of upgrading our facility with new equipment and capabilities to meet these, as well as future demands. this is an exciting time in the long history of our company.

SuppORTING AND ImpROvING INTERNAL pRODucTION pROcESSBy nils Buajordet, Lean 6 sigma Coordinator, Missile Products division

one of the core processes in rocket motor production is the casting of the propellant in the motor case. the process starts by the weighing of the various chemicals before running a mixing process. this is followed by the casting of the motors with subsequent hardening and further processing.

this process is challenging; some of the rocket motors have seen major quality issues in the form of cavities and cracks, resulting in major repair costs and scrap. Sometimes a mix has to be scrapped before casting be-cause the quality is questionable. this avoids an even higher quality cost at a later stage.

An improvement project and a Red team have been established for the improvement of the general process. in addition, several projects have been undertaken related to the sub- processes. the improvement methods are lean Six Sigma or Process Failure Mode effects Analysis (PFMeCA). the focus is on revealing root causes within an applied amount of laboratory experiments, tests, thermal and structural analysis, and statisti-cal analysis (Minitab).

through this work, we have developed new tools and processes, changed control procedures and acquired new knowledge that facilitate the creation of more robust products. Quality-loss costs have been reduced significantly, which will allow an annual savings of about 4 million noK with today’s production.

PRoPellAnt GRAin HeAt tRAnSFeR AnAlySiS

in order to achieve a good result, it is impor-tant to create an arena where the various dis-ciplines can collaborate. this collaboration is crucial for success, facilitating the discovery and sharing of knowledge, and enabling it to be utilized in new product development.

New tools provide good result.From mix testing in 5-gallon mixer.

location A

location b

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DONATIONS AND cONTRIbuTIONS LIvING THE vALuES

DEDIcATION

pREcISION

cARE

By Jennifer O’donnell, Trade show Coordinator, nammo Talley

every year, nammo talley donates time, money and volunteer hours to various non-profit organizations serving the united States military. these contributions are a way for us to show our gratitude to the sacrifices these men and women, and their families, make for our country.

Specifically, nammo talley has partnered with organizations who serve the uS Army, the uS Marine Corps, the Special operations Forces, the uS navy, and the uS Air Force. these include the Association of the uS Army, the Marine Corps Association, the unit Scholarship Fund, the naval Special Warfare Foundation, and the SAFe Association.

nammo talley sponsors many functions and events for the Association of the uS Army (AuSA). AuSA works to support all aspects of national security, while advancing the interests of America’s Army and the men

nammo talley’s 2012 Consolidated Company Goals have been created to reflect our commitment to the nammo values of Dedication, Precision and Care. our company and employees recognize these values as the foundation of a strong, unified company.

the process we used to develop our goals, with the nammo Visions in sight, was straightforward. First, we listened to our customers. next, we set company sales, profit, and growth targets based on the nammo corporate financial plan. We also aligned our goals with nammo’s long-range strategy, and defined the steps necessary to progress further along the five-year path that makes up our Strategic Plan. Finally, because we recognize that people are our most valuable resource, we included a pledge to provide a respectful, professional and developmental work environment for our employees.

through this process we were able to define nammo talley’s 2012 Consolidated Company Goals.

nammo talley is dedicated to integrated Product Development and operational excellence. our goals are to deploy a phase-gated iPD process to achieve performance, budget and schedule milestones on all development programs. We are also committed to strengthening our world-class production capabilities in each of our manufacturing centers.

nammo talley has a proven track record of reliability and accuracy, both in technology and business. our Precision Goals include Customer Satisfaction, Strategic Growth, and Productivity. We are committed to delivering flawless products and services to customers around the world on time, every time. We are also committed to leveraging innovation and technology to increase sales and win awards in all four product lines. We are using Six-Sigma, lean manufacturing and value engineering to improve cycle times, raise yields and reduce wasteful cost of poor quality.

in alignment with the corporate value of Care, we strive to create an environment where employees are safe and secure; employee engagement is a top priority. We believe that employees engaged in main-taining a safe, respectful, professional and developmental work environment are highly motivated to fulfill commitments and exceed customer expectations.

the task of setting achievable but challenging goals is crucial for the success of any company. Company goals must specify in plain language the key objectives the company plans to accomplish during the year. Goals also help employees stay focused through extended projects with periodic milestones and metrics. Additionally, goals help us set common priorities, allocate resources smartly and collaborate as a team. Finally, they allow us to balance efforts. balanced goals reinforce the need to excel in multiple areas that can at times be competitive.

and women that serve. nammo talley works closely with AuSA to advance the soldier and soldier family programs.

As a premier sponsor of the uS Marine Corps Association, nammo talley provides funding for special projects and awards for uS Marines. this preeminent association and foundation for all Marines and friends of the Corps is dedicated to the development and recognition of professional excellence. the association’s mission is to expand awareness of the rich traditions, history, and esprit de corps of the united States Marines.

in a similar effort, nammo talley donates money and time to foundations that are focused on our Special operations Forces and the naval Special Warfare units. the unit Scholarship Fund honors Special operations Soldiers who selflessly serve and sacrifice in the defense of the uSA, by providing

merit-based undergraduate/graduate school scholar ships to families of our Special opera-tions Forces personnel.

nammo talley also recognizes the sacrifices that members from the naval Special Warfare community, their spouses and their children make in service to our country. the naval Special Warfare Foundation provides support and promotes peace of mind to those who face a high level of uncertainty as a matter of routine.

the SAFe Association is yet another founda-tion with which nammo talley is very invol-ved, with its participation in many functions throughout the year. Previously known as the Survival and Flight equipment Associa-tion, the SAFe Association is dedicated to the preser vation of human life. it provides a common meeting ground for the sharing of problems, ideas and information.

Navy Seals Warfare Foundation Fundraiser in San Diego, CA. From left: John Johnson, Gary Ostendorf, John Hill, Tim Clawitter and Rob Willhelm.

By scott selle, President nammo Talley

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NAmmO vANäSvERkEN RATED ’vERy GOOD’ by uS GOvERNmENT

NEw OffIcE IN AuSTRALIA

nammo Vanäsverken’s performance in filling a 5.56 mm and 7.62 mm AP contract during 2005 to 2011, with a total accumulated order value of $131 million, has been evaluated by the uS Government through the CPAR system (Contractor Performance Assess-ment Report).

in the category of Quality of Product or Service, Schedule and Management of Key Personnel, the rating was ‘Very Good’, with the highlight being the rating of ‘exceptional’ in the area of business Relations. the final recommendation stated: “Given what i know today about the Contractors ability to execute what they promised in their proposal, i definitely would award to them today given that i had a choice”.

the accumulated goodwill was instrumental in winning the recent five-year AP system contract, the result of a continuous team effort within the entire organization, which is something that should make the nammo Vanäsverken team very proud. it is al-ready evident that the nammo Vanäsverken team is continuing this customer-focused high performance. At the recent First Article test for the newly-award-ed contract, the uS DCMA representative wrote: “i definitely got the sense that this is an overall supremely professional group of people building a quality product for purchase by the customer”.

nammo has decided to establish a permanent presence in Melbourne in order to better serve the Australian Armed Forces, expand sales and strengthen industrial partnering in the region.

the decision to set up a full-time permanent presence in Australia is a firm testimony to nammo’s commitment to the Australian customer. the intention is to provide the customer with a single, dedicated point of contact from the time of initial enquiry, all the way through to delivery of the order. in addition, the new office will work to foster stronger industrial ties in the region.

the nammo office in Melbourne opened in January 2012. its Managing Director is Rob Wellwood, a previous colleague with long-lasting experience from Australian defense industry.

AwARD TO NAmmO bAkELITTfAbRIkkEN

the DCMA (Defense Contract Management Agency) presented their annual award for excellence in Quality for 2011 to nammo bakelittfabrikken for being the best Arms, Ammunition & explosives Supplier in northern europe.

Quality Assurance Manager, Jan-ove bråthen accepted the certificate on behalf of the entire staff. bråthen acknowl-edged that being recognized and appreciated for outstand-ing quality in both production and delivery by DCMA is a source of pride for everyone at nammo bakelittfabrikken: all the production staff has contributed to this achievement.

certificate of recognition Awarded to nammo Bakelittfabrikken for 2011

Nammo presenting the principles of Transfer of Technologies from an industry perspective. Meeting organized by UNIDIR in Geneva 14 November 2011.

ARmS TRADE TREATyBy sissel solum, senior Vice President Communication, nammo Group

the global trade in conventional weapons – from warships and battle tanks to fighter jets and machine guns – remains poorly regulat-ed. Many governments have voiced concern about the absence of internationally accepted rules for all nations to guide their decisions on arms transfers. this is why negotiations were initiated on an Arms trade treaty, be-ginning with the un resolution 61/89 in 2006.

in 2009, an open-ended working group (open to all nations) on an Arms trade treaty held two meetings. At the end of 2009, the General Assembly decided to convene a Conference on the Arms trade treaty in 2012 “to elaborate a legally-binding instrument on the highest possible common international standards for the transfer of conventional arms”.

individual nations retain primary responsi-bility for providing security and protecting their populations, as well as for maintaining the rule of law. they take decisions on arms exports, either by granting export licenses to companies, traders, and brokers, or by performing an internal assessment when

the situation involves government-owned weapons, which generally do not require an export license. that is why governments are expected to demonstrate responsibility in their decisions regarding arms transfers. this ensures that such transfers will not exacerbate conflicts or lead to violations of international humanitarian law or human rights laws.

the Arms trade treaty (Att) will affect all defense industries when finalized. this is why it is so important that the industry exhib-its responsibility and shows willingness to participate and follow the treaty discussions. nammo has participated as an industrial observer, representing the norwegian De-fense industry, in cooperation with norwegian Government officials. in addition, nammo is part of a working group in the Aerospace and Defense industries Association of europe (ASD). ASD has issued a number of position papers outlining the industries’ support and key industrial objectives for the Att:

· the most important issue for the industry is that an Att that regulates legal trade in conventional arms will be an important step towards a regulatory level playing field.· the harmonization of scope and obligations is vital, regardless of the finally agreed content. the industry expects greater clarity and consistency as to how nations control arms transfers. the industry needs a framework that is straightforward and simple.· the industry’s position is also that the treaty should be legally binding on all that have ratified it, as well as those who sign the treaty after it has gone into effect.· based on our experience, the key to success is acceptance by and applicability to all un member nations and their industries.

nammo will continue to support the un Arms trade treaty process, together with ASD, by providing constructive comments and recom-mendations throughout the negotiations. nammo looks forward to playing an active role, also in the implementation of the Arms trade treaty.

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noRWAynammo AS - Raufoss – Head officenammo Raufoss AS – Raufossnammo nAD AS – løkken Verknammo bakelittfabrikken AS – Aurskog

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