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BAE Hägglunds Expands in Örnsköldsvik Amid European Rearmament

Economy & businessEconomy
Key Points
  • BAE Hägglunds is constructing 50,000 square meter halls in Örnsköldsvik as part of a major expansion.
  • Sweden's defense spending is projected to rise to over 250 billion kronor by 2030, fueling growth at companies like BAE.
  • The CEO states that immigration is required to meet production demands, but the municipality has not yet delivered on this need.

Expansion and construction are taking place at both the factory in Gullänget and in Nordanås, where BAE Hägglunds has its test track. Large halls of 50,000 square meters are being built for storage and workshops, though the timeline for this construction has not been specified. The defense giant has grown rapidly in recent years against a dark background: the war in Ukraine and a steadily deteriorating security situation.

Now, the threat of war hangs over Europe, and all countries are rushing to rearm, including Sweden. In 2026, Sweden will invest around 175 billion kronor in defense, compared to around 46 billion ten years ago. By 2030, it is estimated to reach just over 250 billion kronor, with several billion of our tax money going to defense companies like BAE and Saab.

We would never be able to deliver only from Örnsköldsvik.

Tommy Gustafsson Rask, CEO of BAE Hägglunds

Recent orders include the first of 156 CV 90s delivered to Slovakia, while neighboring country Czechia has ordered even more, 243 CV 90s. The total number of CV 90s ordered across all contracts mentioned remains unclear. In 2025, six NATO countries signed an agreement that represents the largest order so far for Örnsköldsvik-based BAE Hägglunds, but which specific countries were involved has not been disclosed.

Agreements with different countries involve various forms of industrial cooperation, though the specific forms are unknown. " The municipality has not yet managed to deliver on that, though what exactly it has failed to provide regarding immigration or infrastructure is not detailed.

But Övik will still be operating at full capacity.

Tommy Gustafsson Rask, CEO of BAE Hägglunds

And adds that it requires immigration.

Tommy Gustafsson Rask, CEO of BAE Hägglunds
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BAE Hägglunds Expands in Örnsköldsvik Amid European Rearmament | Reed News