As Europe races to rebuild defence manufacturing capacity amid growing geopolitical tensions, Swedish defence company SWEBAL has secured €30 million in funding to complete construction of a large scale TNT production facility in Nora, Sweden. The project is designed to strengthen NATO resilience and reduce Europe’s dependence on imported energetic materials at a time of increasing pressure on ammunition supply chains.
Building Strategic Defence Infrastructure
Founded in 2024, SWEBAL focuses on addressing one of the most critical bottlenecks in European defence production: the shortage of trinitrotoluene, more commonly known as TNT.
The company is developing a dedicated manufacturing facility in Sweden that will produce more than 4,000 tonnes of TNT annually once operational. The output will support the production of artillery shells, drone munitions, mines, and other defence systems required by European manufacturers.
The funding round will be used to complete construction of the facility and support large scale industrial deployment.
High Profile Swedish Investors Back the Project
The €30 million investment round attracted several prominent Swedish investors, reflecting growing support for domestic defence manufacturing.
Among the investors is Karl Engelbrektson, Sweden’s former Chief of Army and current Head of Advisory Board at the Finserve Global Security Fund. His investment in SWEBAL is independent from the fund itself.
The round also includes backing from Par Svardson, founder of Apotea and Adlibris, alongside Thomas von Koch and several Swedish family offices.
Responding to Europe’s Ammunition Crisis
The war in Ukraine and rising defence spending across NATO countries have exposed serious weaknesses in Europe’s defence industrial base, particularly in the production of energetic materials such as TNT.
According to SWEBAL, Europe has faced persistent shortages since Russia’s invasion of Ukraine, limiting the continent’s ability to scale ammunition manufacturing quickly enough to meet rising demand.
The company believes that building local production capacity is essential for ensuring long term defence readiness and supply chain resilience.
Regulatory Progress Moves Construction Forward
SWEBAL has already secured key regulatory approvals for the project. In December 2025, the company received environmental permits from Sweden’s Land and Environmental Court, followed by approval of the detailed development plan in January 2026.
With the regulatory process advancing as expected, construction plans are now moving forward at pace.
The company says the factory will operate continuously around the clock once completed, using European sourced raw materials and machinery to strengthen regional industrial independence further.
Aiming for Full Scale Production by 2028
According to co founder and CEO Joakim Sjoblom, the funding arrives during a historic turning point for European defence manufacturing.
Governments across Europe are rapidly increasing military production capacity as geopolitical instability drives record defence budgets and heightened demand for ammunition.
SWEBAL’s facility is expected to become a key part of Europe’s defence supply chain, helping manufacturers secure the explosives required for sustained production growth.
The company targets full scale production in 2028 and says the project is now fully financed.
Reducing Dependence on Foreign Imports
One of the central motivations behind the project is reducing Europe’s reliance on imported energetic materials and vulnerable long distance supply chains.
SWEBAL argues that current dependencies create serious strategic risks, particularly during periods of geopolitical instability or conflict.
By establishing domestic TNT production in Sweden, the company aims to provide a more secure and resilient supply source for European defence manufacturers.
Europe’s Defence Manufacturing Push Accelerates
The investment in SWEBAL reflects a broader shift across Europe toward rebuilding industrial defence capabilities after years of underinvestment.
As NATO members increase military spending and seek greater strategic autonomy, companies capable of supplying critical defence materials are attracting growing attention from investors and governments alike.
With funding secured and construction progressing, SWEBAL is positioning itself as a key contributor to Europe’s next generation of defence manufacturing infrastructure.
