SWEBAL secures €3M to build Sweden’s first TNT plant since the ’90s, backed by ex-Army Chief

Stockholm-based SWEBAL has raised €3M in strategic funding to construct Sweden’s first TNT production facility since the 1990s. The investment came from notable investors, including Major General (ret) Karl Engelbrektson, Sweden’s former Chief of Army.

The round includes Pär Svärdson, founder of Apotea and Adlibris, and Thomas von Koch, founding member and former CEO of private equity firm EQT.

Major General (ret) Karl Engelbrektson, says, “The current rules-based world order is being challenged on multiple fronts. The use of military power as an active tool in the exercise of politics has become a reality. A global arms build-up is underway, and production capacity does not meet current needs. As a result, political leaders are calling on industry to ramp up. The issue is no longer money, but time and capacity.”

Addressing Europe’s critical TNT shortage

Currently, Russia can produce artillery shells at an annual rate equivalent to 50,000 tonnes of TNT, while Europe accesses only 6,000 tonnes of locally produced TNT annually.

This shortage has caused enormous price increases for TNT in new defence contracts since 2020, with procurement processes suffering from slow lead times and supply chain dependencies on long-distance imports. The defence sector is experiencing unprecedented growth as NATO allies bolster ammunition production capabilities.

Founded in 2024 by Joakim Sjöblom and Carl Duforce, SWEBAL aims to enhance NATO’s resilience through critical explosive compound production.

Co-founder and CEO Joakim Sjöblom previously founded Minna Technologies in 2016, a subscription management company acquired by Mastercard in 2024. Major General Engelbrektson has served in the Swedish armed forces since the 1980s, ultimately as Chief of Army from 2016-2023, before taking on the position of Head of Advisory Board at Finserve Global Security Fund in 2023.

The company’s facility will centralise European ammunition production supply chains, reducing NATO ammunition shortfall through localised production.

The US is similarly addressing supply concerns, constructing its own major TNT plant in Kentucky due for completion in 2028, highlighting the global strategic importance of explosive compound manufacturing capacity.

Capital utilisation

The funding will support SWEBAL’s planning, design and construction preparation of the manufacturing facility in Nora, Sweden, targeting full-scale production by late 2027.

The plant will operate 24 hours daily with 50 employees, producing over 4,000 metric tonnes of TNT annually and boosting European-made supply by 75 per cent. SWEBAL submitted final documents to the Swedish Court of Environment for approval in March 2025, with construction planned to commence by year-end.

Joakim Sjöblom, SWEBAL co-founder and CEO, says, “This investment provides invaluable experience and knowledge. It further validates the need to act quickly and invest capital to strengthen European production capacity.”

“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. All enabling our mission to strengthen Europe’s defence resilience and ensure long-term security by addressing critical gaps in ammunition production.”

€3M roadmap

SWEBAL previously raised approximately €1M in November 2024 and emerged from stealth mode with media coverage in January 2025, receiving public recognition from Sweden’s Minister of Defence in February 2025.

The company targets addressing supply chain vulnerabilities through geographic proximity to ammunition manufacturers, while reducing dependency on fragile global value chains.

Pär Svärdson, Swedish entrepreneur and founder of Apotea, says, “Defending our freedom and democracy is incredibly important, and after Russia’s full-scale invasion of Ukraine, one truly understands why. That is why Sweden needs a strong defence – but behind a Swedish defence, we must also have a capable Swedish defence industry. Therefore, it feels natural to invest in the Swedish defence industry – both to contribute and because it could potentially be a very smart investment.”