Full Breakdown
Ukraine War Fuels Explosive Growth at Sweden’s Hagglunds Defence Plant
4/30/2026, 1:04:32 AM
War-Driven Surge in Sweden’s Defence Sector
The 2022 Russian invasion of Ukraine has turned Sweden’s defence industry into one of Europe’s fastest-growing arms hubs. In Örnsköldsvik, BAE Systems Hagglunds saw its order book expand from a few hundred million dollars to $8 billion and its staff rise from 800 to 2,600.
Background & Key Players
Hagglunds began in the late 19th century as a family furniture workshop, later expanding into buses, trams, aircraft and, by the 1950s, armoured vehicles. Demilitarisation after the Cold War left the firm under-utilised, prompting a 2012 restructuring that cut one-third of staff. British defence group BAE Systems acquired Hagglunds in 2004; its managing director Tommy Gustafsson-Rask has overseen the recent turnaround. Sweden’s defence sector, dominated by Saab, joined NATO in 2024 after two centuries of neutrality. With roughly 30,000 people employed across Sweden’s defence sector, Hagglunds alone employs 2,600, making it the largest employer in Örnsköldsvik.
Scale of Expansion
Hagglunds’ revenue rose from a few hundred million to $8 billion, while output increased 400 % since 2020. A $300 million investment added a third production line, preparing for an expected 500 CV90 orders from five European nations. The CV90, costing about $10 million each, has sold over 1,300 units with more than 600 on order. Sweden’s total arms exports jumped from 8 billion crowns in 2015 to 28 billion crowns in 2025, ranking it seventh in the EU.
Impact
The expansion makes Hagglunds Örnsköldsvik’s largest employer, strengthens Sweden’s industrial base, and raises its profile within NATO. It also prompts debate over long-term demand and the ethics of supplying combat vehicles to active wars.
Official Statements & Responses
Gustafsson-Rask said the post-2014 environment set a growth path that ‘took off’ after the 2022 invasion, highlighting the CV90’s protective role. President Zelenskiy thanked Hagglunds leadership for saving Ukrainian lives.
Verbatim Quotes
- “I think the 2014 annexation of Crimea was when we saw something starting to happen,” — Tommy Gustafsson-Rask, Managing Director, BAE Systems Hagglunds
- “From having a typical order book of a couple of hundred million U.S. dollars, we're now at 8 billion U.S. dollars. So it's an enormous development,” — Tommy Gustafsson-Rask
- “He came forward, hugged me, and told me that your CV90s are saving our soldiers' lives, and I get goosebumps even now,” — Volodymyr Zelenskiy, President of Ukraine
Outlook
Hagglunds targets an additional 500 CV90s for five European customers in 2026, while its new production line aims to meet rising NATO demand amid an uncertain Eastern-European security landscape.
