Europe continues to arm itself. A major European manufacturer is increasing its capacity to produce 155 mm artillery ammunition
France, December 26, 2025 – KNDS France has concluded an important contract before its double initial public offering (IPO), simultaneously on the Paris and Frankfurt stock exchanges. KNDS logically consists of KNDS France and KNDS Deutschland.
KNDS roughly states that KNDS France has “renewed its commitment” to Les Forges de Tarbes under a new long-term agreement aimed at supporting accelerated production of 155mm artillery ammunition as France continues to adapt its defense industry to a war economy. According to a press release, the company signed a three-year long-term agreement (LTA) covering the supply of hollow shell bodies for 155mm artillery ammunition. The contract can be extended for another three years and the companies describe it as unprecedented in both duration and structure.
The company said the agreement envisages the production of 60,000 to 150,000 155mm hollow shell cases by Les Forges de Tarbes between 2026 and 2028. These components will be delivered to KNDS France and integrated into finished artillery ammunition. The move marks a shift from annual procurement to a multi-year contractual framework. KNDS France said the change is intended to provide greater industrial stability and support Les Forges de Tarbes in expanding its production capacity in response to growing demand for artillery ammunition.
Company representatives said the long-term nature of the agreement allows Les Forges de Tarbes to plan investments, workforce expansion and tooling modernization with greater certainty. The agreement is designed to be consistent with France’s broader “war economy” approach, which prioritizes sustainable production, supply chain resilience, and rapid expansion of key defense products.
According to a press release, Les Forges de Tarbes has committed to doubling the production capacity allocated to KNDS France during the contract period, if requested. This scaling-up mechanism is intended to allow the industrial base to quickly adapt to operational requirements, particularly during periods of high artillery ammunition consumption.
The companies said the flexibility built into the agreement is a key element, allowing for adjustments to production rates without the need for annual renegotiations of contracts. This approach is intended to ensure continuity of supply while reducing administrative and contractual delays.
Les Forges de Tarbes specializes in forging and machining metal components for ammunition, including shell bodies, which form the structural core of artillery shells. Under the new agreement, the company will maintain continuous production over several years, rather than responding to individual annual orders.
KNDS France, a major European manufacturer of ground weapon systems and ammunition, said the agreement strengthens its ability to meet customer requirements for 155mm artillery ammunition. Demand for this caliber has increased sharply in recent years due to high-intensity ground combat and the need to replenish national stocks.
Although the companies did not identify specific end users in the announcement, 155mm ammunition is a standard NATO caliber widely used by European armed forces and allies. The contract focuses on industrial readiness, rather than immediate delivery to a specific military customer.
The agreement also reflects a broader trend across Europe toward long-term industrial partnerships in the defense sector. Instead of relying on short-term orders, governments and manufacturers are increasingly turning to multi-year frameworks to stabilize production and avoid bottlenecks in critical supply chains.
It should be added to the KNDS report that the price of 155mm shells has increased from around €2,000 to €8,000 since the start of the special military operation on 24 February 2022. A particular problem is the lack of standardization and around 14 versions are in use.
However, this is just one of the reports regarding KNDS, the most closely linked to arms production in the Slovak Republic, but it should, like the others, be read in the context of the company’s listing on stock exchanges. In mid-December 2025, the Franco-German armored vehicle and ammunition manufacturer KNDS announced that its board of directors had decided to approve plans for an initial public offering (IPO) in Paris and Frankfurt next year.
Peter North
