Värmland in Final Phase for Potential New Gunpowder Plant
Kristinehamn is one of the leading candidates for Verkan AB’s planned gunpowder production facility—an investment aimed at strengthening Sweden’s defense supply chain and supporting sustainable, cellulose‑based manufacturing linked to Värmland’s bioeconomy.
“This is proof of the successful work carried out locally to highlight the municipality’s potential for advanced manufacturing and process industry,” says Ahmed Alaeddine, Head of Business Region Värmland.
Verkan AB is a newly founded company with the intention of securing the production of gunpowder and critical input materials for Sweden. The purpose is to strengthen national defense capability as a complement to existing industry by producing components such as nitrocellulose and various grades of gunpowder.
“The link to Värmland’s bioeconomy is clear and strategically important. That a gunpowder factory—fundamentally dependent on cellulose as a raw material—sees Värmland as a main candidate highlights the strength of our regional value chain. It connects our world‑leading competence in the forest industry with the critical supply needs of the future,” says Benjamin A. Nyqvist at Business Region Värmland.
The Region’s Strengths Make the Difference
Verkan AB intends to establish a resource-efficient production facility in Sweden with the ambition to use recycled or renewable materials. By locating near raw materials and logistical solutions, the goal is to reduce transport emissions while strengthening the local economy, according to the company. Verkan plans to begin permit processes in 2026 and aims to start initial production in 2028.
“Kristinehamn’s position as a finalist confirms the concrete strengths we have in Värmland. We have deep expertise within process industry and an established ecosystem that, not least through the proximity to Karlskoga and the re-establishment of A9, has strong ties to the defense industry. The targeted work to position the region within the ‘Swedish Security Corridor’ is now yielding results, where access to industrial land, strong growth within the defense industry and its supply chains are significant competitive advantages,” says Ahmed Alaeddine at Business Region Värmland.
Business Region Värmland will continue to support the process to ensure that this strategically important investment is realized in Värmland.