With Europe exposed to war on its doorstep once again, and the NATO alliance continuing to face some internal political opposition with regard to the accession of its newest candidates, the modern European security environment is a challenging one to say the least. In May 2023, ESD interviewed Lieutenant General Göran Mårtensson, Director General of the FMV, the Swedish Defence Materiel Administration.
Credit: FMV
ESD: Can you briefly elaborate on the role, organisation and duties of the FMV?
Mårtensson: The Swedish Defence Material Administration, FMV, is a governmental agency acting under the Ministry of Defence. FMV procures equipment and logistics services for the Swedish Armed Forces. Our technical, commercial, military and legal expertise, as well as our expertise in project management, ensures that we deliver sustainable solutions over time. As Sweden is strengthening its military capacity FMV are seeing an increase in operations. Last year, 2022, orders to the industry doubled compared to the previous year and amounted to SEK 36.4 billion. With the political ambition to increase Sweden’s defence spending to 2% of GDP, the FMV’s turnover will increase from today’s SEK 28 Bn to approximately SEK 50 Bn in 2026.
ESD: With respect to Research and Development, what share of these efforts is typically undertaken by the FMV with respect to new domestic requirements?
Mårtensson: At present, the Swedish Armed Forces and FMV are strongly focused on the procurement of what is needed today, but we must not underestimate the importance of R&D and more long-term capability needs. The FMV is responsible for technology development while the Swedish Defence Research Agency (FOI) conducts the more research-oriented tasks. In a difference to the FOI, the FMV does not perform the R&D itself but procures it from industry, institutes and academia. Due to the current international situation and the Swedish NATO membership application, we see a significant increase in the R&D funding in the coming decade and the process of planning and prioritising how to use the growing funds is ongoing. It is important to adequately balance strengthening our R&D in classical technology areas with the exploration of new technologies that may affect our military capability disruptively. This requires efficient ways to integrate the fast civil technology development in our materiel development. The current international situation also leads to a renewed emphasis on access to materials and technologies where the supply chains need to be under control. This perspective will impact both what R&D we do and how we do it in the coming years.
Credit: BAE Systems
ESD: What are the key requirements for developing Sweden’s military potential that still lie ahead?
Mårtensson: Within FMV’s area of responsibility, we see several important factors for developing the Swedish Armed Forces capabilities according to the current political direction. Replacement of equipment sent to Ukraine must be done urgently. We must be given the conditions to place orders for equipment early in order to be able to get deliveries on time. We need to take into account the industry’s production capacity and ability to deliver materials. We need to have fewer specific national requirements when we procure equipment, alone or in cooperation with other countries. In conclusion, the time factor must have a greater impact when we acquire equipment.
ESD: Which of your current procurement programmes are being carried out in partnership with other national or multinational procurement organisations?
Mårtensson: FMV has a large number of projects carried out in partnership with other countries.
Sweden is lead nation for the joint procurement of the BvS10 from BAE Systems within the CATV (Collaborative All-Terrain Vehicle) programme, which includes Germany and the United Kingdom.
FMV recently placed an order for 20 armoured vehicles from Finnish Patria within the framework of the CAVS project, Common Armoured Vehicle System, which is a collaboration between Sweden, Finland, Latvia and Germany.
On 18 April, Sweden and France signed a framework agreement to cooperate on a new anti-tank system, Akeron MP.
Together with Denmark, Finland and Norway, Sweden is procuring a new combat uniform system within the NCU project (Nordic Combat Uniform) which is part of NORDEFCO.
Sweden has a cooperation (LoI) with the Netherlands in the area of very long range radars (Ballistic Missile Defence radars). The cooperation includes amongst other things security of supply, education, future industrial cooperation and joint development of BMD radars.
Credit: FMV
ESD: How has Swedish domestic industry had to adapt or develop to meet key domestic requirements over the past decade?
Mårtensson: Swedish defence industrial capabilities and capacity is an integral part of the Swedish defence. The state has no shareholder interest in defence industry but due to defence procurements and cooperation related to specific national security requirements the industry has adapted its portfolios over the years. Developing cutting edge technology as a result of domestic orders the industry has done very well exporting a wide variety of products on the global market as well. From grenade launchers, to armoured vehicles and aero fighters. Sweden proud itself as being one of the few countries in the world with an industry that produces aero fighters, military vehicles and submarines by themselves.
Growing both organically and through mergers and acquisitions, the industry has been able to expand enough to meet the Swedish defence requirements of having suppliers that can take full system responsibility for those platforms that are coupled with national security requirements. There is also an aspect of security of supply here that cannot be understated.
ESD: To what extent has Sweden’s domestic industry been supported through government policy, for instance through skills development programmes?
Mårtensson: I think that the word ‘support’ is the wrong word here. Sweden treats regulations regarding unauthorised state aid very seriously. Although single source procurements within the limits of procurement regulations occur we are very careful to not give any national tenderers any improper advantages. That said, Sweden, as other countries with a vital national defence industry, has a need to utilise the industry´s prowess to foster innovation. Defence innovation is one of the foundations of future capabilities. We do this in a number of ways. One being through national procurement programs of larger platforms with specific national security requirements discussed in the previous questions. In addition, commonly, FMV orders studies and research as a mean to foster both new ideas and prototypes of new technologies. Both from industry and state actors such as the Swedish Defence Research Agency (FOI). The years of budget restraints within defence sculpted a structure in which the Swedish defence saw great value in maintaining a defence industry capable of producing necessary capabilities even during challenging economic conditions. Resulting in cost-effective materiel that still had a satisfactory technological edge. The industry, of course, should be lauded for being able to find solutions that fit both technological and economic prerequisites.
Credit: SAAB
ESD: How have Swedish defence modernisation priorities been impacted by the war in Ukraine and the country’s progress toward NATO accession? As Sweden joins the alliance, do you expect any major changes to procurement priorities? For instance, more equipment aimed at providing coverage of the Baltic Sea or support for Arctic operations.
Mårtensson: Political work is currently underway to develop a new political direction for Sweden’s military and civil defence. The new focus will be brought forward in time as a result of Russia’s war against Ukraine. At the same time, the defence authorities are implementing the direction of the latest defence decision from 2020, before Sweden’s application to NATO. Swedish membership in NATO will have an impact on the Swedish Armed Forces and its capabilities, but to what extent is too early to say. However, the government has said that Sweden will join the European Sky Shield Initiative. It is assumed to have an impact on the development of future capabilities.
ESD: Ukraine has served as a great reminder of the importance of maintaining a reliable supply of ammunition. Have Sweden’s recent procurement priorities or practices been impacted by this lesson?
Mårtensson: The ongoing war have foremost made us change our mindset from ‘just in time delivery’ to a much more long-term view on sustainment of delivery. To do this we have, as an example, added economy and reviewed the way that we form our contracts.
ESD: With Sweden seemingly deciding not to pursue the Tempest programme, what are the country’s future plans with respect to developing a sixth-generation fighter capability? Given Sweden’s fighter aircraft design heritage, is flying solo an option the FMV is considering?
Mårtensson: Sweden will, pending governmental decision, launch a national combat air project with the purpose of creating a decision roadmap for future combat air solutions. The outcome will then be subject to a decision by the Swedish government. Those solutions can be the following:
a) Continued national development
b) International cooperation
c) Acquisition of an already developed
system
Credit: SAAB
The interview was conducted by Mark Cazalet.
