Verkan advances Kristinehamn propellant plant as permit phase begins

Verkan AB has taken a further step in plans to establish a propellant manufacturing facility in Kristinehamn municipality. 

The company is moving ahead with an application for an environmental permit following an assessment of technical, logistical and regulatory factors.

The project forms part of a wider effort to strengthen Sweden’s defence capability. Kristinehamn was selected over Borlänge, which had also emerged as a leading candidate during the site selection process.

- Kristinehamn offers the conditions we need to build the world’s most modern and safest propellant plant, said Hugo Carlsson, chief executive of Verkan AB, in a press release.

Securing production

Verkan is a Swedish company founded in 2024 with the aim of strengthening Sweden’s defence capability by securing the production of propellant and other critical input materials, complementing existing industry.

Operations will commence only once the necessary feasibility studies and preparations have been completed, all required permits have been obtained, and financing has been secured.

If realised, the project could have a significant regional impact. The municipality estimates the investment could create up to 450 jobs.

- An establishment of this kind would generate up to 450 jobs in our municipality, strengthening both the local economy and the wider region’s attractiveness, said Lars Nilsson, chair of the municipal executive board.

Production is scheduled to begin in 2028, subject to securing the necessary permits and financing.