Between 300 and 400 employees at BAE Systems Hägglunds in Örsköldsvik in northern Sweden will loose their jobs as a result of Swedish Defence choosing to place an order for armoured wheeled vehicles with Finnish Patria instead of with them, according to Swedish Television.
The decision to go with the Finns was taken last week by the Swedish Defence Material Administration. It has been criticised by the Social Democratic Opposition, which urges the government to take both security and industrial perspectives into account.
In a statement to Swedish News agency TT, the trade union claims that the equivalent of 130 million US dollars of Swedish public money has been invested in developing the required vehicle at Hägglunds, money that now will be wasted.
But the Swedish Defence Material Administration says that it was clear that the Finnish offer was better than that of Hägglunds, both in terms of economy and performance, and other areas such as environmental effects.
Currently BAE Systems Hägglunds in Örnsköldsvik has 1000 employees