Svekon’s boat contract signals a shift towards prime status

Laughter and conversation spill into the lobby at Svekon in Solna, north of Stockholm.

It is afternoon, and the Swedish ritual of "fika" - a coffee break to socialise with colleagues - is drawing to a close.

- Fika really is an institution in Sweden, says Martin Frisk, deputy CEO of Svekon. 

- We have had fika twice a day for about 50 years.

Svekon is a growing and succesfull SME in the midst of a major transition that, if realised, will fundamentally reshape the company. 

What that entails becomes clearer later.

Up to 100 vessels

Just before Easter, Svekon announced it had delivered the first MSMB 200 high-speed motor boat to the Swedish Defence Materiel Administration (FMV).

The delivery marks the start of a programme that could include up to 100 vessels over the next seven years.

The vessels are militarised versions of civilian aluminium boats produced by Alukin Aluminium Boats, part of the Nimbus Group. Several modifications have been made in the process, Frisk explains.

- These boats are small, fast workhorses operating across archipelagos, harbours and near-coastal areas, transporting everything from equipment to personnel. 

- It is a highly versatile system, he says, noting potential demand in Finland, Norway and Denmark.

Technical know-how

Svekon - short for Svensk Konstruktionstjänst - has supported Swedish defence since 1981, providing technical expertise and design solutions across multiple projects and platforms.

Our approach has been to balance the responsibility we take with what the customer needs, while leading procurement

Martin Frisk, deputy CEO, Svekon

It operates simultaneously as an engineering company, a design studio and a consultancy.

- Our approach has been to balance the responsibility we take with what the customer needs, while leading procurement, Frisk says.

The boats are not the first major programme Svekon has delivered for its domestic customer. 

However, until the award of the boat project in October 2024 - with Svekon as lead contractor working with subcontractors - its role had largely been within partnerships or consortia of specialised firms.

- This is the first time we have undertaken a project of this scale, taking on responsibility for procurement while balancing our role with the customer’s needs, says Frisk.

This shift has been noted by Robert Limmergård, secretary general of SOFF, who in an interview with Defence Nordic pointed to Svekon’s emerging role as an integrator – a trend developing within Sweden’s defence industrial base.

Frisk adds that FMV is expected to confirm the size of the first batch within weeks.

- It is a long-term framework contract, and we look forward to delivering, he says.

Significant growth

Joining the interview is CEO Johan Lantz, who, alongside Frisk, has been with Svekon since 2004.

- We have grown significantly in recent years, Lantz says.

- But it is nowhere near where we expect to be.

We have grown significantly in recent years - but it is nowhere near where we expect to be.

Johan Lantz, CEO, Svekon

Turnover has doubled over the past four years, rising from 10 million euro to approximately 20 million euro, driven primarily by defence, which now accounts for more than 90 percent of revenue.

The company expects turnover to exceed approximately 50 million euro in 2025 and 2026, and to surpass 100 million euro from 2027.

- There are significant opportunities ahead, and we want to challenge ourselves. We are facing a rare window of opportunity, Lantz says.

Svekon’s ambition is to close what management sees as a structural gap in Sweden’s defence industrial hierarchy.

Measured by turnover, Saab leads the sector, followed by BAE Systems Hägglunds and BAE Systems Bofors. Svekon already works with these primes but aims to position itself just below them as a national prime contractor over the coming decade.

- We believe in our model and how we work. We have built competencies across software and mechanics, but we are aiming higher. We want to become a prime defence contractor, Lantz says.

Frisk adds: 

- We are open to international cooperation, but domestic demand is substantial. For now, the opportunities are close at hand.

Svekon is backing that ambition with investment.

The company has established a factory around 20 minutes north of Solna, with just under 6,000 square metres of production space.

Activity at the site is currently classified, Lantz notes, but describes it as a "very large project" that will expand the company’s manufacturing capabilities.

- This is the next step for us - not only to act as an integrator, but to deliver defence products manufactured in-house, he says.

Redefining the company

Management expects this shift to redefine the company over the coming years, with each programme contributing to its ambition of becoming Sweden’s next prime contractor.

We have secured contracts in a highly competitive environment, which gives us confidence

Johan Lantz, CEO, Svekon

- We have secured contracts in a highly competitive environment, which gives us confidence, says Johan Lantz.

- There is also an international market to explore, but we will move step by step - and aim to enjoy the process, he adds.