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Denmark buys Swedish combat vehicles for billions

Sweden and Denmark are jointly purchasing 205 Swedish Stridsfordon 90 combat vehicles from Hägglunds in Örnsköldsvik. The price tag is 25 billion Swedish kronor. It's the largest deal we've ever made, says Hägglunds CEO Tommy Gustafsson-Rask.

» Published: December 06 2024

Denmark buys Swedish combat vehicles for billions
Photo: Jessica Gow/TT

Denmark is buying 115 and Sweden 50 units of Stridsfordon 90, which are manufactured by Hägglunds in Örnsköldsvik. In addition, the countries are jointly purchasing another 40 vehicles for delivery to Ukraine.

The total purchase amount is SEK 25 billion, according to a government press release.

Discussions for a year

According to Danish TV 2, it is considered one of the largest arms deals in Danish history.

It is also the largest deal ever for Hägglunds, says the company's CEO Tommy Gustafsson-Rask to TT.

This is a hugely important deal for us, he says.

The agreement was signed on Friday morning, but the discussions have been ongoing for about a year, according to Gustafsson-Rask.

This continues to build our order book. Now we have an order book of over SEK 80 billion, which means we are utilizing the production capacity we are investing in, he says.

As early as the annexation of Crimea in 2014, Hägglunds began to see an increased interest in its combat vehicles. But it was with Russia's full-scale war in Ukraine that growth really took off.

The war is the driving factor in the enormous growth we are experiencing, says Gustafsson-Rask.

"Unique asset"

Three years ago, the company had a turnover of SEK 2 billion. In five years, Tommy Gustafsson-Rask expects the figure to have grown six to ten times.

Defense Minister Pål Jonson writes in a comment that "the investments enable more Swedish combat vehicles to make Europe and especially Ukraine safer" and that the Swedish defense industry "is a unique and strong asset for our national and collective defense capabilities."

Prime Minister Mette Frederiksen (S) was shown the vehicle during a visit to BAE Hägglunds in Örnsköldsvik last spring. Denmark and Sweden have signed a letter of intent for closer cooperation.

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By TTThis article has been altered and translated by Sweden Herald
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