Swedish Defense Start-up SWEBAL Secures €3 million for Construction of Country’s First TNT Production Facility Since the Cold War
On June 18, 2025, SWEBAL, a Swedish company dedicated to improving NATO's resilience and deterrence capabilities through the production of TNT, an essential explosive compound used in modern military munitions such as artillery shells, announced a €3 million strategic investment to begin construction in Nora, Sweden.
SWEBAL was co-founded by tech entrepreneur Joakim Sjöblom, who previously founded Minna Technologies in 2016, a subscription management company acquired by Mastercard in 2024.
SWEBAL plans to build a large-scale manufacturing facility to enhance allied defensive capabilities by centralizing the European ammunition production supply chain. The plant is expected to reach full-scale production by late 2027, operating 24 hours per day, and will require 50 employees for continuous production. Once operational, SWEBAL’s facility will increase European-made supply of the key component for explosive munitions by 75%, producing over 4,000 metric tons of TNT per year and addressing NATO's ammunition shortage.
Currently, Russia can produce artillery shells at an annual rate equivalent to 50,000 tons of TNT, while Europe can access only 6,000 tons of locally produced TNT annually - primarily from Poland - with the remainder coming from imports from Asia that cause delays and supply chain issues. European defense initiatives have not adequately addressed this TNT shortage, leading to increased prices for TNT since 2020. German firm Rheinmetall aims to lift gunpowder output by 50% by 2028, but CEO Armin Papperger said meeting demand may require nearly doubling production to over 20,000 tons. The U.S. also plans to bolster supply by constructing a major plant in Kentucky, set to be completed in 2028.
The €3 million strategic investment consists of contributions from several investors, including Sweden’s ex-Chief of Army, Major General (ret) Karl Engelbrektson, Pär Svärdson, founder of Apotea and Adlibris, and Thomas von Koch, founding member and former CEO of private equity firm EQT. This investment will be used to obtain permits and approvals, improve the design and engineering of the facility, and prepare for initial construction.
Major General (ret) Karl Engelbrektson stated, "Current global dynamics are challenging the rules-based world order, with military power increasingly used as a political tool. There is an ongoing global arms build-up, and production capacity does not meet current needs. This situation requires industry to ramp up production, particularly for ammunition and explosives, where significant bottlenecks exist. Stockpiles are limited, and permitting processes are extensive. Production capacity is concentrated and vulnerable, while value chains remain fragile due to geographic dependencies. Producing TNT in multiple locations, close to ammunition manufacturers, would reduce vulnerabilities and enhance scalability. Collaboration between the public and private sectors is essential to address these challenges swiftly."
Investor Pär Svärdson reiterated the criticality of investing in domestic defense capabilities, "A strong defense is necessary for Sweden, especially following recent geopolitical events such as Russia's invasion of Ukraine. Investing in the Swedish defense industry contributes to national security and represents a potentially smart investment."
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