Special report: BAE Systems Hägglunds invests in production capacity ahead of potential CV90 order

The first Slovak CV90 MkIV IFV was rolled out on 20 February 2026 in an official ceremony at BAE Systems Hägglunds in Örnsköldsvik. (Janes/Nicholas Fiorenza)

BAE Systems Hägglunds is investing USD450 million to expand its production capacity at its site in Örnsköldsvik, northern Sweden, ahead of a potential order for hundreds of CV90 infantry fighting vehicles (IFVs) under the Swedish-led CV90 MkIV Nordic initiative.

Sweden, Finland, Norway, Lithuania, Estonia and the Netherlands signed a technical agreement in November 2025 defining the programme-specific principles of co-operation, technical requirements, and an agreed action plan until the signing of the main contract, which is planned for mid-2026. Estonia has since cancelled its participation in the joint procurement in favour of unmanned aerial vehicles (UAVs) and air defence systems. CV90 deliveries to the remaining participants are planned to begin in 2028.

BAE Systems Hägglunds managing director Tommy Gustafsson-Rask told Janes at a media briefing in Örnsköldsvik on 28 April 2026 that USD300 million had been invested in the site over the last two years and another USD150 million would be invested. He said three halls were being built, the workforce was being increased from 750 to 1,200, production was being increased by a factor of five or six, and tools and processes were being improved.

Gustafsson-Rask contrasted that with the company's struggle to survive during the “bathtub years” of low revenues in 2017-22 and a one-third reduction in the workforce.

He said over 1,900 CV90s have been contracted, with the most recent contract in December 2024 worth USD2.5 billion and signed with Denmark and Sweden for 115 and 50 CV9035 MkIIICs, respectively. This also includes procurement of 40 CV90 MkIIICs financed by the Danish and Swedish governments for Ukraine.

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