Verkan AB takes the next step for planned facility in Kristinehamn
Verkan AB is moving forward with the environmental permitting process for a planned gunpowder production facility in Björneborg, Kristinehamn. The investment is expected to create up to 450 jobs and strengthen Värmland’s position in the security industry and advanced manufacturing.
“This is an exciting investment, and we are pleased that Verkan has chosen to move forward with Kristinehamn" says Lars Nilsson, Chair of the Municipal Executive Board in Kristinehamn Municipality.
The selection process initially included around 50 municipalities across Sweden. The final decision stood between Kristinehamn and Borlänge. Verkan AB has now selected Kristinehamn for the next phase of development.
"We have had a close and constructive dialogue from day one and look forward to continuing the collaboration. An establishment of this kind could create up to 450 jobs while also making both the municipality and the region more attractive for future industrial investments,” says Lars Nilsson, Chair of the Municipal Executive Board in Kristinehamn Municipality.
Business Region Värmland in Close Cooperation With Kristinehamn Municipality
Throughout the process, Business Region Värmland has worked in close cooperation with Kristinehamn Municipality to support the investment dialogue and highlight regional conditions.
“Investments of this scale require a broader regional perspective where infrastructure, industrial capacity and competence supply are considered together. That has been our role in the process,” says Benjamin Amukena Nyqvist, Investment Advisor at Business Region Värmland.
Structured working methods
Kristinehamn Municipality has played a central role throughout the process and has over several years developed structured working methods for handling large industrial investments like this.
“Kristinehamn Municipality has demonstrated a strong ability to receive and support large-scale industrial establishments in an efficient and professional way. The municipality’s ability to manage complex planning processes within demanding timelines reflects strong collaboration, competence, and delivery capacity. We would also like to thank Verkan AB, as well as citizens and regional stakeholders, for the constructive collaboration and strong engagement throughout the process,” says Ahmed Alaeddine, Head of Business Region Värmland.
The Swedish Security Corridor
An important factor in the process has also been the growing strategic importance of The Swedish Security Corridor. The initiative has strengthened cooperation between municipalities, industry and regional stakeholders, and contributed to positioning the region within Sweden’s total defence sector.
Production planned för 2028
Subject to permits and financing, initial production for Verkan gun powder facility is planned for 2028.