BAE Systems Hägglunds expects record CV90 infantry fighting vehicles order as six-nation contract talks advance

By Defence Industry Europe

The Armed Forces of Ukraine are set to receive 40 CV90 infantry fighting vehicles as part of a joint procurement agreement involving Sweden, Denmark, and BAE Systems Hägglunds. The SEK 25 billion contract was signed by the Swedish Defence Materiel Administration and the Danish Ministry of Defence Acquisition and Logistics Organisation.
Photo: BAE Systems.

On 12 September, during a press briefing at the Defence and Security Equipment International (DSEI 2025) exhibition in London, Peter Nygren, Business Development Director at BAE Systems Hägglunds, announced that the company expects a record contract for CV90 infantry fighting vehicles. He confirmed that the Swedish subsidiary of BAE Systems anticipates concluding the agreement by June next year.

 

A letter of intent was signed in Brussels in June by Sweden, Finland, Norway, Lithuania, Estonia and the Netherlands. According to Nygren, the agreement may result in a one-off order for 600 CV90 vehicles, which would mark the largest in the programme’s history.

To date, around 1,300 CV90s of all variants have been delivered worldwide, with several hundred more already on order. The upcoming vehicles are expected to follow a common standard, though negotiations continue on equipment details and possible differences.

Nygren noted that BAE Systems Hägglunds may receive a request for proposal within weeks from programme participants. He added that “there is no certainty at this stage regarding the Netherlands and Estonia” and their participation in the initiative.

He did not specify which CV90 version would be ordered, with recent contracts involving Mk IIIC and Mk IV chassis. The agreed configuration will determine unit cost and therefore the final value of the contract.

In preparation for the expected order, the company is investing about USD 300 million to expand production capacity, two-thirds of which has already been spent. The aim is to reach an output of 250 vehicles annually by 2026, five times the 2020 level, with a possible further rise to 350 units per year if justified by demand.

By late 2026, a third production line is scheduled to open at the company’s Örnsköldsvik plant, while new subcontractors are being sought, mainly in countries opting to join the programme. For now, BAE Systems Hägglunds intends to focus on fulfilling existing contracts and the potential multinational agreement, though interest has also been expressed by other parties, such as Brazil.

 

 

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