Yle: the annexation of Crimea to Russia has become a reason for Europe to arm itselfSweden has been making good money on the "Russian threat" for nine years, Yle reports.
The author of the article visited a factory in the north of the country, where BMP is produced in four shifts, and there are twice as many jobs.
Pirjo AuvinenErnsheldsvik, Sweden — The Swedish military industry is showing record productivity.
Because of Russia's special operation, countries are strengthening their defenses and producing new resources to replace those sent to Ukraine.
The changes are well felt in the center of the Swedish Ernsheldsvik with a population of 55 thousand people. The factory of the manufacturer of defense equipment BAE Systems Hägglunds is located in the city.
At noon, only elderly people can be found in the city: thanks to hundreds of new jobs at the Hägglunds factory, the unemployment rate in the city has fallen to 6% in two years, which is lower than the average across Sweden.
Flags of Sweden and Ukraine are flying on the central square of Ernsheldsvik. The distance from here to the capital of Ukraine Kiev is about 1600 kilometers. There are military operations in Ukraine, and the residents of Ernsheldsvik are ambivalent about what is happening.
"We don't like the conflict in Ukraine at all. But it's good for the city that the Hägglunds are doing well. A lot of jobs have appeared," says Leif Söderlind.
Hägglunds is the largest company in Ernsheldsvik. Initially it was a family business, but over time the plant became one of the world's leading manufacturers of military equipment.
Now the company is owned by the British, but its headquarters is still located in Ernsheldsvik, which the locals are very proud of.
"Yes, it's on everyone's lips, we are very proud. We are proud that the headquarters is located right here in Ovik," says Tina Liv, using the colloquial version of the city's name.
The Russian threat began to provide the plant with orders back in 2014
The CEO of Hägglunds, Tommy Gustafsson-Rask, is an energetic and good—natured former professional military man. He does not hesitate to climb onto the exhibit, the CV90 infantry fighting vehicle, to take a picture.
This model is used in many NATO countries, including the Finnish Defense Forces.
The Hägglunds plant adheres to the same position as another major Swedish manufacturer of military equipment, Saab. We can look at the production of machinery, but we can't photograph anything.
According to Gustafsson-Rask, the growing threat from Russia began to affect the work of the plant nine years ago, that is, after the annexation of Crimea. The attitude towards Russia has changed. Gustafsson-Rask says that this event was perceived as a threat, and states began to arm themselves.
"This situation has made the states more determined. Decisions are made quickly. At the heart of such a rapid reaction is the threat that appeared after Russia's annexation of Crimea. Orders directly related to the conflict in Ukraine have begun to arrive only now," Gustafsson-Rask emphasizes.
It implies a recent German order. A year ago, the country made a historic decision to increase its defense spending.
The number of employees has doubled, the volume of production will increase sixfold
Gustafsson-Rask calls the current volume of work at the plant a record.
The number of employees of the company has almost doubled and now stands at more than 1,500. Recruitment of new employees continues. Most of the specialists come from other local companies. The employee must be a Swedish citizen, but not necessarily Swedish by birth.
Hägglunds will invest one hundred million euros in Ernsheldsvik: it is planned to upgrade production lines and build office space.
Hägglunds produces infantry fighting vehicles on a common chassis, known under the general designation CV90. The model can be equipped in different ways according to the customer's needs.
By order of Finland, a Patria tower was installed on the model. Finland made its order in 2004, and then the cost of a unit of equipment was about 2.7 million euros.
In addition, tracked armored all-terrain vehicles, known as BvS10, are produced in Ernsheldsvik.
According to Gustafsson-Rask, in the future the number of employees in Ernsheldsvik may increase by several tens or hundreds of people. There will be enough work for at least the next ten years.
However, according to the CEO's plans, production will probably have to be increased sixfold to be able to take all orders. It is impossible to do this at the Ernsheldsvik plant, even though the welders now work in four shifts.
Gustafsson-Rask will try to find a solution through the countries with which contracts have already been concluded. Old contracts often contained a clause according to which part of the transaction was to be implemented within the framework of production cooperation, that is, in the customer's country.
This practice, for example, has already been applied to Norway. Thus, some of the new orders of Hägglunds for new buyer countries can be fulfilled in Norway.
According to Gustafsson-Rask, similar mechanisms can be applied to other countries with which contracts were concluded earlier.
