Hanza’s defence push gains traction

Defence and security is an expanding business area for Swedish manufacturer Hanza.

For the first time, the company has divided its customers into five segments, presented alongside its record Q1 results on Tuesday. Defence accounted for SEK 200 million in the quarter, the smallest of the five segments, but one showing growth.

- These are also our focus areas, so they are very important, said Erik Stenfors, chief executive and founder, during the conference call.

10 percent

For Hanza, the segment includes products and systems for defence and security, spanning both military and civilian applications.

Historically, around 10 percent of group turnover has come from defence, with customers including Saab and Patria.

According to the Q1 report, demand in the segment is “very strong”, driven by increased investment in defence and security solutions.

During the period, Hanza secured new orders and is working to expand capacity within the segment.

The company also sees significant growth potential, arguing that its business model can help simplify supply chains and meet rising capacity requirements.

In January, Hanza completed the acquisition of Germany’s BMK Group GmbH, a European provider of advanced electronics manufacturing. The acquisition added 1,500 employees and turnover of SEK 3.3 billion.

Limited exposure

BMK has historically had limited exposure to defence, but has already secured new business in the segment following the acquisition.

Speaking to analysts on Tuesday, Stenfors said BMK had not previously worked with the defence industry prior to joining Hanza. The group has since launched a programme called Lynx, aimed specifically at the defence sector.

- We have already secured our first orders from the defence industry. We have high expectations that defence will become a significant part of BMK’s portfolio as well, Stenfors said, adding that he could not disclose further details about the projects or customers.