A Swedish startup is taking defence tech back to basics — by building the country’s first TNT factory since the Cold War.
Stockholm-based Swebal has secured a €3mn investment for the plant, slated to enter full operation in late 2027. Located in Nora, a town about three hours from the capital, the factory is expected to produce more than 4,000 tonnes of TNT a year.
Investors in the facility include the co-founder of venture capital firm EQT, Thomas von Koch, serial entrepreneur Pär Svärdson, and Sweden’s former army chief, Major General Karl Engelbrektson.
Joakim Sjöblom, Swebal’s founder, said the funding would help fast-track construction of the factory, which he hopes will bolster European security.
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“The investment will help us speed up further towards the final approvals, allowing us to have the shovel in the ground as soon as possible,” he said. “All enabling our mission to strengthen Europe’s defence resilience and ensure long-term security by addressing critical gaps in ammunition production.”
TNT, or trinitrotoluene, is a powerful explosive used in everything from artillery shells to air-dropped bombs. Europe is only able to access around 6,000 tonnes of locally produced TNT per year. By contrast, Russia’s production capacity of explosives is about 50,000 tonnes annually, according to Swebal’s estimates.
Pär Svärdson, the founder of two prominent Swedish tech firms, Apotea and Adlibris, said investing in local TNT production was a logical step given the current security concerns in Europe.
“Sweden needs a strong defence — but behind a Swedish defence, we must also have a capable Swedish defence industry,” he said. “Therefore, it feels natural to invest in the Swedish defence industry — both to contribute and because it could potentially be a very smart investment.”
The investment comes amid a broader defence tech boom in Europe, as politicians increasingly look to arm themselves with technologies like drones, submarines, and AI-based weaponry.
Rather than high-tech warfare, though, Swebal’s TNT plant falls into the more traditional category of ammunitions production, an industry largely dominated by one player: Poland’s Nitro‑Chem, Europe’s primary military-grade TNT producer.
Swebal’s plans for a TNT factory still require further regulatory approvals from the Swedish government before construction can commence. Sjöblom believes the recent investment will help accelerate that process.
