From F-35 setback to defence supply chain gains

Around a decade ago, Jan Rohdemejer learned a costly lesson about the limits of industrial positioning in politically driven procurements.

In May 2016, the Danish government announced that it had selected the supplier for the F-35 fighter aircraft to be acquired by the Danish Armed Forces.

Rohdemejer, chief executive of surface treatment specialist HAI Horsens, had spent three years securing contracts with rival bidders including Boeing, the Eurofighter consortium and Saab, all of which were competing for the programme.

- Even though I felt I was competent, fast and the best, and had good contracts with those companies, it was ultimately a political decision over which I had no influence whatsoever, he says.

The contract was awarded to US-based Lockheed Martin, rendering HAI Horsens’ agreements with the losing bidders commercially redundant.

- Then my contracts were worth nothing, he says.

Navigating bureaucracy

The episode was a setback for HAI Horsens. It also marked the start of a prolonged effort to secure a foothold within the Danish defence supply chain - a process that now appears to be yielding returns.

Becoming a supplier or subcontractor to the Danish Armed Forces requires companies to work through extensive administrative and compliance procedures.

HAI Horsens encountered this first-hand when, around ten years ago, it began preparing to position itself for what is now emerging as one of the largest European rearmament cycles since the Second World War.

Different roles require different certifications. In addition, staff must obtain security clearances, which can prove complex when a significant share of the workforce originates from Eastern Europe.

- Some of our Eastern European employees have to return home during their summer holidays and go to the local police station to obtain a criminal record certificate with the signature and stamp of the local authority. And that process cannot simply be expedited, says Rohdemejer.

Similar barriers

Danish subcontractors have reported similar barriers to entry. In October, one industry executive warned that increased defence funding risked concentrating orders among "the same old" suppliers.

For HAI Horsens, however, the early investment in compliance and positioning now appears to be paying off. Rohdemejer identifies defence as one of the company’s primary growth areas.

- The heavy work others are experiencing now is what we went through three to five years ago, he says.

HAI Horsens has published its annual report for the 2024/25 financial year, recording a profit of DKK 5 million. 

For 2025/26, management forecasts gross profit in the range of DKK 20 million to DKK 30 million and net profit of DKK 3 million to DKK 6 million.

This article was first published in Defence Nordics’ affiliate publication, Metal Supply.dk