Peab lands major defense industry contract

Peab has secured a 280 million Swedish kronor contract to construct new test halls and offices in Örnsköldsvik for defense contractor BAE Systems Hägglunds.

BAE Systems Hägglunds is a global defense industry player with over 100 years of local history, and one of the largest employers in the municipality. The company is expanding operations to meet increased order intake.

– It feels really good that we’ve been entrusted to build the new facilities needed for the rising demand that BAE Systems Hägglunds has, said Anders Gard, CEO of Peab Industribyggnad in the north.

The contract includes options to call off an additional 330 million kronor beyond the 280 million kronor contract sum.

This construction contract follows a previous “phase 1” agreement where Peab optimized the project collaboratively with the client to ensure proper quality while managing risks and uncertainties. The project now moves into “phase 2” with the signing of the construction contract.

It is a collaborative turnkey contract. Work starts in spring 2025 and is scheduled for completion in autumn 2026.