Europe’s defence expansion drives Sweden’s textile industry

Around one-third of Woolpower’s business already comes from customers in the defence sector, police, emergency services, and other public institutions. Demand from these customers continues to grow.

“We are seeing a clear increase in demand from this type of customer. More and more armed forces are recognising the value of clothing designed to withstand extreme conditions while also providing long-lasting durability,” said Linus Flodin, CEO of Woolpower.

The new contract with the German armed forces is another indication that a market that has been an important niche for Woolpower for years is now expanding. Woolpower products are already supplied to several countries, and the company’s customer base continues to grow.

In-house production becomes a strategic advantage

As demand increases, another element of Woolpower’s business model is becoming increasingly important. The company operates its own textile factory and controls a significant part of the production process, from yarn to finished garments.

Several years ago, Woolpower made the largest investment in its history by building a new factory in Östersund. The investment doubled the facility’s floor space and created opportunities to further increase production.

This gives Woolpower a different position from much of the textile industry, where production is often spread across numerous suppliers and different countries.

“We decided to keep both production and know-how in our own facilities. This has always been very important to us from a quality perspective, but today it has taken on an additional dimension. For customers in the defence sector, it is also about knowing where production takes place and having confidence that deliveries can continue even if the global situation deteriorates,” said Linus Flodin, CEO of Woolpower.

Woolpower’s production takes place in Sweden, which is both a member of the European Union and NATO. As European countries strengthen their defence capabilities, resilient supply chains and security of supply are becoming increasingly important.

“Being able to say that we have production here in Sweden and that we ourselves control a significant part of the value chain is one of our strengths. It is no longer just about where the clothing is produced, but about having the capacity to continue deliveries when conditions become more difficult,” the Woolpower CEO added.

Growing demand requires increased production capacity

The new contract with the German armed forces could be worth up to SEK 250 million to Woolpower. Combined with growing demand from the defence sector and other professional customers, this means the company will continue to strengthen its production capacity in Östersund.

“We need to be able to grow with demand and continue developing our production. This is positive for us, but it is also proof that it is possible to build competitive textile manufacturing in Sweden,” said Linus Flodin.

Growing activity in the defence sector is also strengthening Woolpower’s position in both the professional and consumer markets.

“If products meet the demanding criteria set by the military personnel operating in the field, that also says something about their quality for other users. Whether you work outdoors or wear these garments in your free time, the basic requirement is the same: they must perform in difficult conditions and they must be durable,” said Linus Flodin.