SWEBAL, a Swedish defence manufacturer, has invested €3m ($3.5m) for the construction of a new TNT production facility in Nora, Sweden.
TNT is an explosive compound used in military munitions including artillery shells.
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The facility is expected to operate at full scale by late 2027, producing more than 4,000 tonnes (t) of TNT annually.
It will employ 50 people to maintain continuous production.
The project is supported by Sweden’s former army chief Major General Karl Engelbrektson, e-commerce pioneer Pär Svärdson, and Thomas von Koch, a founding member and past CEO of private equity firm EQT.
The strategic investment will be utilised on securing necessary permits and approvals before construction begins at the end of this year.
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By GlobalDataIn March, SWEBAL has submitted the required documentation to the Swedish Court of Environment for approval.
The funding will also contribute to refining the design and engineering of the facility while preparing the groundwork for initial construction activities slated for this year.
SWEBAL co-founder and CEO Joakim Sjöblom said: “This investment provides invaluable experience and knowledge. It further validates the need to act quickly and invest capital to strengthen European production capacity. The investment will help us speed up further towards the final approvals, allowing us to have the shovel in the ground as soon as possible. All enabling our mission to strengthen Europe’s defence resilience and ensure long-term security by addressing critical gaps in ammunition production.”
SWEBAL’s new manufacturing facility is set to increase Europe’s local supply of essential components for explosive munitions by 75%.
Currently, Russia is capable of producing artillery shells at an annual rate equivalent to 50,000t of TNT, while the remaining European nations have only 6,000t of locally produced TNT available each year.
Karl Engelbrektson siad: “Producing TNT in multiple locations, and in geographic proximity to ammunition manufacturers, would reduce vulnerability and increase the ability to scale production when needed. Therefore, more producers are needed to ensure a secure supply in times of peace, crisis and war. To achieve this, collaboration between the public and private sectors is essential to share risk in an agile way and to respond swiftly when required.”
