New Danish legal framework for defence-related construction projects and production activities

 – and the first two national projects for production of ammunition and solid rocket propellant

Denmark has adopted a new and extraordinary legal framework. It introduces a fast-track mechanism and special and supportive legal rules for establishment of industrial projects and performance of operational activities serving national defence or civil contingency purposes.

The framework is set out in Act No. 1097 of 15 September 2025 on Construction Projects and Operational Activities Serving Significant National Defence or Civil Contingency Purposes.

The act gives ministers authority to accelerate projects that are vital to the security of Denmark or its allies. It has already been applied to two major projects. The first is the establishment of a national ammunition production facility in Elling, a small industrial town near Frederikshavn in North Jutland. The second is the establishment of a new production facility in Vojens, a regional centre town in Southern Jutland, where the Ukrainian company Fire Point is building a plant for the production of solid rocket propellant. The Vojens site is located on the outskirts of the nearby village of Skrydstrup and adjacent to the Danish Air Force base Fighter Wing Skrydstrup, which houses Denmark’s F-35 fighter aircrafts. Both locations have been chosen for their existing industrial infrastructure, strong transport connections and proximity to key military and logistics facilities.

For companies, investors and financiers – Danish, Ukrainian and international – this new Danish act provides a clearer, faster and more supportive legal framework and environment for establishing and operating strategic production facilities for weapons, ammunition and military equipment. It may also open new opportunities for cooperation, investment and financing within EU and international law. The act generally still requires strict compliance with export-control, sanctions and ESG standards. The act remains in force until the end of 2028.

The framework creates a solid foundation for Danish and foreign businesses to establish, expand and finance production and technology projects in Denmark that support national and allied defence and security needs.

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