The defence industry drives innovation and growth
Sweden’s investments in defence and security have created new opportunities for both established industrial companies and smaller tech firms. As the defence budget grows, so does the demand for advanced systems, components, and services — and many smaller suppliers are now seeing their operations expand rapidly.
Increased defence demand drives need for new financing solutions
For SEK, this development means that more companies are seeking financing solutions that can support growth and large order volumes. Many medium-sized companies in the defence sector are facing contracts that are several times larger than their current annual turnover, often with short delivery times and significant working capital requirements.
“This development is fully aligned with Sweden’s new defence industry strategy, which emphasises the need for more strong defence suppliers and technology developers,” says Pål Jonson, Sweden’s Minister for Defence and head of the Ministry of Defence.
An Order That Changed Everything
One example is Svekon, which was awarded a contract by the Swedish Defence Materiel Administration (FMV) to refurbish and deliver a large number of vehicles, along with spare parts, to FMV.
Svekon provides technical consulting services to both civilian and defence and security customers. Since 2014, the company has gradually shifted its business model from pure consulting to offering end-to-end solutions, often with technical support from subcontractors and partners.
“Svekon has also invested in modern production facilities, as well as design and electronics labs at all of its offices. This enables us to manufacture prototypes, carry out larger modification projects and undertake production,” says Martin Frisk, Deputy CEO of Svekon.
The order was substantial and placed significant demands on liquidity. Through close cooperation between Handelsbanken, FMV and SEK, a financing solution was developed that secured the funding and enabled the delivery to be made on time.
An Industry Undergoing Rapid Change
The defence industry is an important part of Sweden’s industrial development and a driving force for innovation. Technological advances in the sector often have civilian applications, while collaboration between companies, academia and the defence sector helps strengthen the competitiveness of industry as a whole.
Increased investment in recent years has also driven growth in several Swedish regions, with defence investments creating jobs, strengthening the talent pool and driving the development of new technologies.
“Svekon is a good example of a company growing alongside the industry and continuously investing in expertise, technology and production capabilities,” says Johan Nobel, Senior Relationship Manager at SEK.
Long-Term Financing for Sustainable Growth
For SEK, the focus is on contributing to a sustainable, long-term industrial base – where financing and risk management enable more Swedish companies to participate in the ongoing defence build-up.
“With our expertise in export finance and guarantees, we can support both large and medium-sized companies as new business opportunities arise, in Sweden and internationally. SEK can be a relevant partner for financing or risk sharing that enables companies to continue growing,” says Magnus Montan, CEO of SEK.
Svekon received the Gasell Award in 2025 in recognition of its strong growth between 2020 and 2024, driven in large part by increased assignments from FMV. FMV has been the company’s largest customer since the 1980s through multiple framework agreements, end-to-end contracts, products and technical support.
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Johan Nobel, Senior Client Executive