BAE Systems Hägglunds expands as Nordic CV90 demand gathers pace

BAE Systems Hägglunds is investing heavily to expand production capacity.

According to Janes, the company is investing around USD 450 million US dollars to expand its production capacity at its site in Örnsköldsvik, Sweden.

The investment comes ahead of a potential order for several hundred CV90 infantry fighting vehicles under the Swedish-led CV90 MkIV Nordic initiative.

Sweden, Finland, Norway, Lithuania, Estonia and the Netherlands signed a technical agreement in November 2025. Denmark, Finland and Norway have also recently ordered additional vehicles, bringing the CV90 into service across all four Nordic militaries.

BAE Systems Hägglunds managing director Tommy Gustafsson-Rask told Janes that around USD 300 million had been invested at the site over the past two years, with a further USD 150 million planned.

He said three new halls are under construction, the workforce is set to increase from 750 to around 1,200, and production is expected to rise by a factor of five to six, supported by improvements to tools and processes.

Estonia has recently withdrawn from the multi-million US dollar programme. 

However, this is expected to have only a "marginal"” impact on production plans, BAE Systems Hägglunds managing director Tommy Gustafsson-Rask told Breaking Defence.

- To put it simply, Estonia accounted for one of the smaller quantities in the programme, o the effect is marginal. Other customers are likely to receive vehicles earlier as a result, which is positive from their perspective. Overall, the impact remains limited,” Gustafsson-Rask said.