Brussels, March 16 : The European Commission has announced the allocation of 500 million euros (about $544 million) to boost ammunition production as part of its support for the European defence industry.

The commission said this would allow the European defence industry to increase its ammunition production to two million shells a year by the end of 2025. Its annual production capacity for 155 mm shells reached 1 million per year in January, Xinhua news agency reported, citing a statement issued on Friday.

To assist the European industry in increasing its ammunition production and readiness, the commission said it selected 31 projects in five areas: explosives, powder, shells, missiles and testing and reconditioning certification.

Also on Friday, the commission launched the work program for the instrument to reinforce the European defence industry through common procurement and the fourth annual work program of the European Defence Fund. These programs, aimed at reinforcing the European defence technological and industrial base, have a total budget of almost 2 billion euros. (1 euro = $1.09)

/IANS