HELSINKI, Jan 31, 2025 (BSS/AFP) - Finland's government on Friday announced plans to build a new TNT factory to shore up Finnish and European ammunition production.

The new factory, valued at over 200 million euros ($208 million), will be constructed by Finnish explosives maker Forcit in the city of Pori on the country's west coast.

"With this new TNT plant, we are responding to the explosives shortage and the ammunition production problems it causes throughout Europe," Finnish Defence Minister Antti Hakkanen said in a statement.

Hakkanen added that the project would be of "major importance for increasing European ammunition production," and that it would "also contribute to the continuation of long-term support to Ukraine."

Hakkanen had on Friday signed a letter of intent with Forcit for the procurement of TNT explosives.

In a separate statement, Forcit said it was planning to invest more than 200 million euros in the new facility, while noting that "there is currently limited capacity for TNT production in Europe."

"Investing in Finland is an investment in increasing the safety and security of not only Finland but also Europe as a whole," Forcit chief executive Joakim Westerlund said in a statement.

The European Union has been striving to produce more weapons in a bid to continue the flow of arms and ammunition to Kyiv and strengthen its own defences.

A majority of EU countries called on the bloc's lending arm, the European Investment Bank (EIB), to increase funding for defence, in a letter circulated Friday.

The letter was signed by 19 of the 27 European Union members, including France, Germany and Finland.

"Strengthening the EU's defence is an existential question for Finland and for Europe as a whole. This means we have to use all the means at our disposal. Boosting private funding is a key priority," Finnish Prime Minister Petteri Orpo said in a statement.