Verkan AB is proceeding with plans to establish a gunpowder production facility in Björneborg, in Kristinehamn municipality (western Sweden). The company has now decided to initiate the environmental permit process for the planned factory.
According to Verkan, the site selection process initially covered areas in approximately 50 Swedish municipalities. During autumn 2025, Kristinehamn and Borlänge (central Sweden) remained as the main candidates before the company decided to proceed with Kristinehamn following an overall assessment of technical, logistical, and regulatory conditions.
"Kristinehamn offers the conditions we need to build the world's most modern and safe gunpowder factory," says Hugo Carlsson, Chief Executive Officer of Verkan AB, in a press release from the company.
The company now intends to apply for an environmental permit under the Swedish Environmental Code with the Land and Environment Court. According to Verkan, the ambition is to commence production in 2028, provided that the necessary permits and financing are in place.
Kristinehamn municipality states that the establishment could create up to 450 jobs.
"An establishment of this type would mean up to 450 jobs in our municipality, which is very welcome and would make our municipality and the entire region more attractive for further future industrial establishments," says Lars Nilsson, Chair of the Municipal Executive Board in Kristinehamn municipality, in a press release from the municipality.
According to the municipality, it was Kristinehamn's business development company, Närsam, that first received the enquiry from Verkan AB.
"I would like to extend my sincere thanks to everyone who has worked on this matter, and a special thank you to all residents of Björneborg who have shown strong support for the establishment," says Madelene Richardsson, Chief Executive Officer of Närsam, in the same press release.
