Breaking News: Just hours ago the Nammo Group announced that it has acquired the Finnish company Eurenco Vihtavuori OY, which produces Vihtavuori powders. This deal was finalized through the signing of a Share Purchase Agreement today, December 19, 2013.

The official press release adds that: “The agreement is subject to approval by French authorities. Filing is done and approval is expected to be granted within short time.” CLICK HERE to read Nammo/Eurenco Press Release PDF.

Eurenco Looks for Buyer for Vihtavuori Plant
On June 18, Eurenco stated that it is “considering” selling the Vihtavuori Ltd. production facility to a third party. This factory currently employs 100 workers, and has annual revenues of $15 million Euros.

Eurenco hopes to sell the plant to a Finnish company, and we are informed that at least one investment group from Finland is interested. Eurenco revealed no immediate plans to shut the facility or to curtail production while Eurenco seeks a buyer. However, Eurenco said that the primary reason for selling the plant was reduced military demand for Vihtavuori products in recent years.

Read Related News Story from Finland. (Use Google Translator for English Version).

No Change in Vihtavuori Powder Distribution in USA
We discussed the potential Vihtavuori factory sale with Adam Braverman, U.S. representative for Nammo Lapua. Adam first noted that Nammo Lapua is NOT a potential buyer for the plant: “That’s not on the table.” But Adam emphasized that he forsees no changes to the current Vihtavuori distribution scheme: “Vihtavuori powder buyers should expect ‘business as usual’. We do not forsee any price or product availablity changes in the short term. There is plenty of powder inventory available, so we can fill all existing demands through the end of 2012.” While Eurenco looks for a new owner of the Vihtavuori plant, there will be no changes to the current system of distribution of Vihtavuori powders in the USA. Adam said: “There is plenty of powder in the European warehouses, and Nammo Lapua will continue to export Vihtavuori propellants to the USA importers (Hodgdon and Kaltron) who will distribute them to our retailers. We do not anticipate any supply shortages.”