Defence technology company MilDef has received a hardware order worth approximately 553 million Swedish kronor from the armed forces of an unnamed European NATO member state. The order concerns the digitalisation of the country's army and is the single largest hardware order the company has ever received. Deliveries are expected to take place during 2027.
– The order from the authority is an example of how MilDef is now beginning to scale up its hardware deliveries as defence organisations build capability, says Daniel Ljunggren, Chief Executive Officer and Group CEO of MilDef, in a press release.
The order is a call-off on the 20-year framework agreement that MilDef signed with the country's armed forces in 2022. The delivery covers an upgrade of tactical IT for use across several different vehicle platforms, where MilDef provides ruggedised hardware solutions in areas including communications, information management, and integration support.
Olof Engvall, Head of Investor Relations and Communications at MilDef, told Nordic Defence Sector that the company has so far received orders totalling approximately one billion Swedish kronor under the framework agreement, but that it has not gone into detail on how volumes will be distributed over the agreement's remaining term.
– We do not want to make any commitments, but in the vast majority of cases the total lands close to the ceiling amount over time. The timing of orders can vary, but historically we have come fairly close in most framework agreements, says Olof Engvall.
According to Engvall, the order is one of the reasons MilDef is expanding its facility in Helsingborg (southwestern Sweden), which is scheduled for completion by autumn 2027.
– We are scaling up hardware deliveries to this customer to a new level, and we therefore need significantly larger facilities. We are going from 4,000 to 10,000 square metres and need to be able to handle hardware in greater volumes, he says.
The company has recruited around 100 people and expects to hire approximately 100 more. MilDef currently has around 550 employees, or just over 600 including consultants.
When asked about the type of ruggedised IT solution being requested, Engvall explains that it concerns digitalisation for the data-driven defence, primarily within the army.
– It relates to command and control, C2 (Command and Control), and digitalisation across a wide range of platforms and vehicles that this nation is currently digitalising. Digitalising vehicles in the context of defence capability is our core business, says Olof Engvall.