Verkan files permit application for Swedish propellant plant

Verkan AB has submitted an environmental permit application for its planned propellant production facility in Björneborg, near Kristinehamn, marking a key step in the development of a domestic Swedish source of defence-industrial propellant.

The application, filed under the Swedish Environmental Code, covers the facility Verkan intends to establish to manufacture propellant for the defence sector. As part of the environmental impact assessment process, the company conducted consultations during the spring with public authorities, affected stakeholders and local residents.

- A robust domestic production capability for propellant and other critical inputs for the defence industry is important to Sweden’s long-term defence resilience. Verkan was founded against that backdrop. This is an important milestone for us, said Hugo Carlsson, chief executive of Verkan AB.

Founded in 2024 and owned by investment company FAM, Verkan aims to strengthen Sweden’s defence capability by securing access to propellant and other critical defence-industrial inputs.

The application has been submitted to the Land and Environment Court at Vänersborg District Court. Construction and production activities remain contingent on the required permits being granted, preparatory work being completed and project financing being secured.

Verkan confirmed in May that it had selected Kristinehamn over Borlänge as the preferred location for the facility. The company cited technical, logistical and regulatory considerations as the principal factors behind the decision.

If approved, the project could have a significant effect on the regional labour market. The Municipality of Kristinehamn has previously estimated that the investment could generate up to 450 jobs. 

Verkan aims to begin production in 2028, subject to the successful completion of the permitting process and the securing of financing.