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We recently sat down with our member MILDEF and their Head of IR and Communications, Olof Engvall, for an insightful conversation on the company’s latest developments, strategic priorities, and outlook.
Who is MILDEF?
MILDEF is a fast-growing Swedish defense technology company. It was founded in 1997 and develops highly robust IT equipment for the defense sector. This includes all types of IT systems and computers—essentially everything you can imagine for military and defense applications.
We design and develop our products in Sweden for customers across Europe and North America. Our headquarters and production facilities are located in Helsingborg, with a major office and integration activity in Stockholm and operations in Germany. We also have +20 employees spread across the United States, including an heads office in Brea, Los Angeles.
In total, we have approximately 600 employees. The company has been publicly listed since 2021 and is Sweden’s second-largest listed defense technology company after SAAB. Major customers include BAE Systems, SAAB, Kongsberg, Rheinmetall and Nordic and European state procurement organizations. Growth has been very rapid in recent years. Our main focus is enabling digitalization for a data-driven defense. Modern defense requires computing power and digital infrastructure, and we provide that through high-performance hardware that supports military software systems. We collaborate closely with companies such as SAAB, BAE Systems Bofors, and Hägglunds.
What are your most important markets?
The Nordic region and Europe are our primary focus, but we also have a significant presence in North America with a strong and growing customer base. While we mainly support defense forces in the Nordics and Europe, we are also devoted to expansion in North America.
With a focus on digitalization, what makes you different?
Digitalization and IT are not straightforward in military environments. Civilian technology simply does not hold up under these conditions, so there is a need for ruggedized equipment at a completely different level.
This niche is highly regulated, with strict requirements for certifications and reliability. The equipment must work flawlessly in critical situations and must never fail. It is a trust-based industry—we are ultimately protecting lives and democracy.
MILDEF has been around for 30 years, and historically this sector was not very attractive, so competition was limited. Now, however, demand has increased rapidly as countries realize the importance of investing in this area. The U.S. has long been highly digitalized, but Europe scaled down much of its defense capabilities after the 1980s. What we are seeing now is a rebuilding phase, together with many other defense companies.
How do new technologies like AI and cybersecurity impact MILDEF’s development?
Cybersecurity is fundamentally transformative—if it fails, the entire system fails. AI builds on top of that, enabling the ability to predict outcomes and identify patterns, which is crucial in what is essentially an information-driven form of warfare.
We deliver complete, sustainable system solutions—not just data, but the entire IT infrastructure that supports AI and cybersecurity. While we are part of the digitalization process, we focus on hardware rather than software.
We are still at an early stage when it comes to AI and cybersecurity in the military. There has not been much of this equipment in army systems historically, so it is difficult to predict exactly where things are heading. However, there is broad agreement that digitalization is essential.
The world is quite unstable right now—how does MILDEF view the future?
We see strong growth over the next 5–10 years, driven by close collaboration with our partners. One of the biggest challenges is delivery capacity. But a challenge we address vigorously.
There is a saying: “Not long ago, there was plenty of time but no money. Now there is plenty of money but no time.” That perfectly describes the situation today. Defense systems across Europe are being rapidly expanded based on political decisions, and everyone is trying to move as quickly as possible.
The challenge is that many countries are competing for the same resources and capabilities at the same time. This creates bottlenecks—what you could call “growing pains” in terms of scaling and delivery. The solution lies in increased collaboration and standardization to build capabilities faster.
Which companies would you like to collaborate with?
At the moment, we have the partnerships we need, but there is a strong focus on securing components, suppliers, and expertise globally.
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