<div id="readability-page-1"><div><div><div><div><p>Outside the northern Swedish town of Örnsköldsvik, one of Nato’s most formidable armoured vehicles thunders through the forest.</p><p>This is where BAE Systems Hägglunds makes the CV90, an infantry fighting vehicle resembling a light tank. Carrying up to 11 soldiers, including three crew, it weighs some 35 tonnes and is powered by a 16-litre, twin-turbo diesel engine, giving it 850 horsepower and a top speed of 43 miles per hour.</p><p>In the Swedish forests, it’s being put aggressively through its paces. As the tracked vehicle powers over gravel, mud, ditches and speed bumps, automatic systems keep the 30-millimetre gun level before it skids to a halt on the asphalt, turns its turret 90 degrees and unfurls a menacing anti-tank missile launcher.</p><p>It’s an impressive display. But far more important than its test run has been the CV90’s real-world performance on the battlefield in Ukraine, where its tough armour and manoeuvrability have gained it a loyal following among soldiers.</p><p>The older mark zero CV90s donated by Sweden have provided vital protection for troops and have even been used by the Ukrainians in unexpected and inventive ways, such as attacking Russian tanks at close range and rendering them inoperable, according to reports.</p></div></div><div><div><p>The first one destroyed by Vladimir Putin’s forces was paraded as a trophy in Moscow, along with other captured equipment that had been donated by Ukraine’s allies.</p><p>But Tommy Gustafsson-Rask, the boss of BAE Systems Hägglunds, insists it was only lost because Ukrainian troops were initially more used to operating Soviet-era infantry carriers.</p><p>“The crew didn’t have faith,” he says. “They [had been taught] that if the vehicle takes fire, they left the vehicle. But the vehicle was fully operational.</p><p>“As far as I know, no soldier has been killed in the CV90 during the whole war,” the Swedish executive adds, rapping his knuckles on metal.</p><p>“It’s a very well-protected vehicle. It has withstood even direct hits from main battle tanks. It was not designed for that – but it has worked.</p><p>“I met president [Volodymyr] Zelensky a couple of times. The first time, he came forward, gave me a hug [and said] ‘Your CV90s are saving our soldiers’ lives’.”</p></div></div><div><div><p>As a testament to this impressive record, a signed flag from troops in a Ukrainian armoured brigade adorns the wall of his company’s factory in Örnsköldsvik.</p><p>It simply reads: “To our Swedish friends, thankful Ukraine.”</p><p>The CV90s being used in Ukraine are equipped with 40mm cannons but lack automated drone protection systems or the means to take out long-distance targets. But these issues will be remedied when the newer models arrive soon.</p><p>Now, hundreds of orders are pouring in for the CV90 from across Europe, as the Continent seeks to protect itself from the threat of armed confrontation with Russia.</p><p>The level of demand has required a major shift in gear for Gustafsson-Rask and his workforce, who were previously grappling with poor demand and the constant threat of redundancies in the post-Cold War years.</p></div></div><div><div><p>Between 2016 and 2018, sales at the company – a subsidiary of British defence group BAE Systems – tumbled from $388m (£285m) to a nadir of $211m.</p><p>“I call these the bathtub years,” says Gustafsson-Rask, pointing to a presentation slide. “That was a tough period for us when we restructured the business.”</p><p>The same chart shows sales have dramatically rebounded since then, reaching $1.1bn in 2025 following major deals with Slovakia, the Czech Republic and Lithuania, along with a joint order from Sweden, Denmark and Ukraine.</p><p>That has taken the current order book to about 600 CV90s – a figure that may soon increase by another 500 if the company lands a mooted joint order from Sweden, Finland, Norway, Lithuania and the Netherlands.</p></div></div><div><div><p>The factory is also busy working its way through an order backlog of 700 BvS10s – all-terrain, amphibious vehicles that it also manufactures – for customers including Britain’s Royal Marines.</p><p>All this has required a significant expansion of the facilities at Örnsköldsvik. BAE has invested $300m since 2022, with another $150m in the pipeline.</p><p>Investment to date has delivered a 30pc increase in production space and a jump in workforce from 800 to 2,600 employees.</p><p>Capacity has increased by about 400pc – suggesting a potential rise in output from 50 vehicles per year to roughly 250, although executives remain tight-lipped about the exact numbers.</p><p>Each CV90 takes about three months to build from start to finish, with almost one a day currently rolling off the production line.</p><p>The process is still largely manual because order numbers are too low to justify the kind of automated equipment that is standard in car production.</p><p>Inside the factory, some workers lean over hulking CV90 chassis in various states of completion, welding hunks of Swedish-forged steel together. Others use a huge hydraulic press to bend mine-protection plates into shape.</p><p>Elsewhere in the complex, engineers are working on the development of “micro factories” that could be deployed to the front line to 3D-print spare parts. This would allow soldiers to carry out rapid repairs in the field.</p></div></div><div><div><p>The site’s growth has been a huge boon for the population of Örnsköldsvik and its surrounding villages, where only 55,000 people live.</p><p>“We’re trying to get the word out to people to come and work here because we need more people,” says Johan, a 34-year-old who works on the BvS10 line.</p><p>His colleague Julia adds that the war in Ukraine has brought home the significance of the job. After all, while Finland acts as a buffer, Russia is still only a little more than 130 miles away at the narrowest point.</p><p>“It’s something that affects all of us,” the 32-year-old says. “We take pride in it.”</p><p>There are already two eight-hour shifts running in the factory and bosses say they are considering adding a third. Another hydraulic press is also on order.</p><p>But to expand output any further, Gustafsson-Rask says, the company will probably have to look at external licensing deals. That would see other companies producing vehicles under the instruction of BAE Systems Hägglunds.</p></div></div><div><div><p>It’s a success story that may draw envy from officials in Britain, where development of the Army’s Ajax armoured vehicle has lurched from one disaster to another.</p><p>On the day we tour the BAE Systems Hägglunds factory, ministers in the UK confirm they will press ahead with the troubled £6.3bn programme – despite dozens of soldiers having fallen ill while riding in the vehicles.</p><p>Gustafsson-Rask and his colleagues at BAE Systems Hägglunds unsuccessfully vied against General Dynamics for the contract – a deal he claims he is now glad to have missed out on.</p><p>The Army is said to have set out more than 1,000 requirements for Ajax, turning what could have been an off-the-shelf solution into a bespoke product. This complexity has partly been blamed for the mess the programme is in.</p><p>“We proposed a solution that we knew that we could deliver,” Gustafsson-Rask says. “The specification [for Ajax]… was not possible to deliver.”</p><p>European buyers of the CV90, who need the vehicles rapidly, have not been as picky as the Army has with Ajax. Several have opted to do joint orders of the same specifications to speed up delivery.</p></div></div><div><div><p>“It’s more a consequence of the security situation, that you’re prepared to do trade-offs,” Gustafsson-Rask says.</p><p>“Time is of the essence. As one army chief said to me, ‘If it’s good for the Dutch army chief, it’s good for me’.”</p><p>He is also confident that, even with the changing state of warfare in Ukraine, where most casualties are now caused by drones, the role of vehicles such as the CV90 remains vital.</p><p>“Somebody told us that IFVs [infantry fighting vehicles] are not relevant any more,” he adds. “For me, that’s wrong. If you are in a standstill position, you maybe don’t need them.</p><p>“But if you want to win the war, you need IFVs and main battle tanks. Because you need to control the ground and take the ground.”</p><p>Rumbling through the Swedish countryside, the CV90 proves his point.</p></div></div></div></div></div>

BAESY

ARKX

<p>BAE Systems Hägglunds in Sweden is ramping up production of the CV90 infantry fighting vehicle, which has proven effective in Ukraine. The company has seen a surge in demand, with orders reaching 600 units and potential for 500 more. Following a period of declining sales, investments of $300 million have expanded production capacity by 400%, increasing workforce from 800 to 2,600. The CV90's robust performance has garnered praise, with Ukrainian President Zelensky acknowledging its role in saving soldiers' lives. The factory is also addressing a backlog of orders for other military vehicles.</p>

Inside the factory racing to rearm Europe