BAE Systems Hägglunds, the Swedish armoured‑vehicle arm of Britain’s largest defence group, ramps production in Örnsköldsvik after Russia’s Ukraine invasion spurred a €4‑billion joint order from Sweden, Finland, Norway, Lithuania and the Netherlands for 500 CV90 infantry fighting vehicles. The deal would nearly double the company’s order book for future operations in the region today.

Managing director Tommy Gustafsson‑Rask said the urgency of re‑armament forces governments toward greater standardisation. He expects the contract to sign in Q3, adding to a backlog of 600 units, with deliveries ending in 2032. Hägglunds now expands output fivefold, having produced 50 vehicles in 2020 and expanding capacity to support the new orders through 2024.

BAE has poured $300 million into Hägglunds over five years, with an additional $150 million earmarked for the next two. Production lines surged 400 % since 2021, and staff climbed to 2,600, making the plant the town’s largest employer. Sales leapt from $200 million in 2020 to $1.1 billion last year and supporting the expanding fleet across Europe in 2024.

Despite Estonia’s withdrawal, the CV90’s anti‑drone suite—surveillance, jammers and active protection—boosts frontline viability. Analysts note that the joint purchase tightens European procurement and strengthens BAE’s market share. With a backlog that may require licensed production for new buyers, Hägglunds remains a key supplier for NATO’s ground forces and supporting future operations through 2026 and beyond.