SWEBAL’s Strategic Initiative to Enhance NATO’s Ammunition Production in Europe

Stockholm, June 18, 2025 – SWEBAL (www.swebal.com), a Swedish enterprise dedicated to strengthening NATO’s deterrence and resilience frameworks, has announced a pivotal €3 million investment aimed at establishing a state-of-the-art TNT manufacturing facility in Nora, Sweden. This explosive compound is a vital component in modern military arsenal, particularly artillery shells.

Enhancing European Defense Capabilities

Co-founded by technologist Joakim Sjöblom, renowned for his establishment of Minna Technologies in 2016, which was subsequently acquired by Mastercard in 2024, SWEBAL plans to build a large-scale plant designed to streamline and centralize the ammunition production supply chain across Europe. This move comes at a time when Europe is increasingly aware of its dependence on imported munitions and experiencing a critical shortfall in TNT supply.

• Production Targets:
  • Full-scale production is projected to commence by late 2027, with operations running around the clock.
  • The facility will employ approximately 50 personnel to maintain continuous production.
  • Once operational, SWEBAL’s plant is expected to increase local TNT production by 75%, contributing over 4,000 metric tonnes per annum to the European defense arsenal.

The Urgent Need for Localized Production

Russia currently dominates artillery shell production, achieving an output of around 50,000 tonnes of TNT annually, starkly contrasting with Europe’s mere 6,000 tonnes. This disparity emphasizes a pressing need for localized production to ensure swift and reliable access to vital munitions.

Existing Challenges

Several factors complicate the procurement of ammunition in Europe:

• Supply Chain Vulnerabilities: Relying on long-distance imports introduces delays and raises logistical challenges.
• Slow Procurement Processes: Lengthy lead times for essential materials hinder operational readiness.
• Cost Escalation: Since 2020, the price of TNT has surged in defense contracts, stressing the necessity for localized production capabilities.

Comparatively, the United States is also responding to this issue by establishing its own ammunition plant in Kentucky, set to be completed in 2028, highlighting a broader trend toward domestic production in response to global security pressures.

Investor Profile

The recent investment is underpinned by contributions from notable figures in Sweden’s defense and business sectors:

• Major General (ret) Karl Engelbrektson: Former Chief of the Swedish Army (2016-2023) and current Head of the Advisory Board at Finserve Global Security Fund.
• Pär Svärdson: Entrepreneurial force behind Sweden’s largest online pharmacy, Apotea, and major online book retailer, Adlibris.
• Thomas von Koch: Former CEO of private equity firm EQT, bringing a wealth of investment expertise.

Strategic Development and Approvals

As SWEBAL prepares to break ground on the manufacturing facility, the initial funding will be allocated toward obtaining necessary permits and enhancing facility design and engineering. The company is currently finalizing its documentation with the Swedish Court of Environment, a crucial step towards commencement of the project.

CEO Joakim Sjöblom affirms, “This investment brings vital experience and signals the urgency with which we must act to enhance European production capacity. Our goal is to break ground as soon as possible, thereby bolstering Europe’s defense resilience against emerging threats.”

Addressing Geopolitical Realities

Reflecting on the current geopolitical landscape, Major General Engelbrektson warns that the rules-based order is under significant strain. The increasing frequency of military engagements as a diplomatic tool has implications for European security preparedness.

Key Considerations for Ammunition Production

• Limited stockpiles and intricate permitting processes are bottlenecks in ammunition manufacturing.
• A lack of readiness to transition from peacetime to wartime production requirements threatens operational capabilities.
• The concentration of production capacity poses additional risks, necessitating a decentralized approach to ensure resilience.

The establishment of multiple TNT production sites close to ammunition manufacturers can enhance scalability and reduce vulnerabilities during crises.

Conclusion

Pär Svärdson emphasizes the need for a robust Swedish defense industry, particularly in light of recent conflicts in Eastern Europe. He states, “Defending our freedoms and democracy is paramount; investing in our defense industry is not only a strategic initiative but also a prudent financial decision.”

By fostering collaboration between public and private sectors, SWEBAL’s initiative endeavors to mitigate risks while positioning Europe to respond effectively to current and future threats.