BAE Systems Hägglunds, the maker of the CV90 infantry fighting vehicle, has shifted from layoffs to ramping up production amid the russia–Ukraine war. This year, the company aims to secure new orders for hundreds of vehicles.
According to Reuters, demilitarization following the end of the Cold War left the company in a difficult position. When new management took over in 2012, the company's first move was to cut the workforce by a third.
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However, in 2014, russia annexed Crimea and launched a war against Ukraine, prompting Swedish weapons manufacturers to anticipate upcoming changes. Procurement started to pick up pace shortly before russia's full-scale invasion in 2022.
It is reported that since 2020, BAE Systems Hagglunds' production volume has increased by 400%, and its workforce has tripled from 800 to 2,600. This was largely achieved thanks to the success of the CV90 infantry fighting vehicles.
To date, over 1,300 CV90s have been produced, with orders for more than 600 additional units. The company also notes that it aims to secure contracts for another 500 units this year for five European countries. The vehicle's success in service with the Ukrainian Armed Forces is also highlighted. 50 units were transferred as part of military aid, and contracts have been signed for an additional 40.
From Defense Express we would like to note that this is a classic example of how the demand for weapons sparked by the russia–Ukraine war has helped defense companies regain their relevance and generate substantial profits. Whereas in the 2010s weapons were purchased in small batches, today we can see large-scale deals.
Another interesting point in this report is a potential order for 500 CV90s in Europe. This most likely involves a joint procurement effort by Sweden, Finland, Norway, the Netherlands, and Lithuania. Estonia was initially part of this group but opted out of the IFV program in favor of air defense systems.
Lithuania plans to purchase 100 vehicles, suggesting that each country may buy an equal number. However, it is possible that the size of the contracts will vary from country to country, and together they will total the required 500.
It should be noted that the Czech Republic and Slovakia are set to receive their CV90s this year, as the first vehicles have already rolled off the assembly line and are currently undergoing testing. The Slovaks are also considering the purchase of the CV90120 light tank.
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