The Swedish investment company Front Ventures AB (Publ) is entering into a joint venture with the defense tech company Skygaard Defense Solutions AB and the investor network Hede Capital AB. Together, they are establishing a new Swedish company (the “Joint Venture Company”) that will manufacture drones in Sweden based on Ukrainian technology from the manufacturer Vluchnyk. This will be the first Swedish-Ukrainian drone factory in the Nordic region, using NATO-standard components.
The parties have signed a Letter of Intent with the Ukrainian drone manufacturer Vluchnyk, which counts the Ukrainian state and Swedish Hede Capital among its shareholders. The purpose is to manufacture and commercialize an interceptor drone based on Vluchnyk’s C-UAV (Counter Unmanned Aerial Vehicle) design.
The agreement grants exclusivity for the Swedish market and access to the rest of Europe.
Production will begin immediately at facilities in Sweden, with an initial production volume of 100 drones, enabling demos and ensuring rapid delivery for the first orders.
Thus, the joint venture company is establishing the first Swedish-Ukrainian drone factory using NATO-approved components. Skygaard will be responsible for sales, and the joint venture company intends to supply both NATO member countries and the Ukrainian Armed Forces.
“This is a historic moment where Swedish and Ukrainian companies unite in a defense collaboration to begin joint drone manufacturing. The joint venture’s goal is to give NATO access to leading drone technology with local production capacity in Sweden. We are planning a large-scale factory as part of phase two, and ultimately aim to become a leading supplier to a European drone defense network,” says Jonas Malmgren, CEO of Front Ventures AB (Publ) and former technical officer and reserve officer.
The drones will be adapted for Swedish production using non-Chinese components, enabling export within NATO. The model to be produced is dual-use, meaning it can also be used for civilian purposes. The drone can be equipped with or without an explosive payload, meaning production does not require a weapons manufacturing license. The joint venture company will also apply for permits to import and export military equipment.
The joint venture company has established contact with both Swedish and Ukrainian authorities to ensure export support and regulatory compliance.
“We are already seeing very strong demand from both civilian and military actors. This initiative meets a concrete need for rapidly produced interceptor drones and strengthens our position within an evolving European security landscape,” says Hans Werner, CEO of Skygaard.
Front Ventures owns one-third of the joint venture company. A amount of initial financing has already been secured for the startup phase. The brand name of the joint venture company will be announced shortly.
For more information, please contact:
Jonas Malmgren
CEO
Front Ventures AB (publ)
070-605 11 97
jonas.malmgren@frontventures.se
www.frontventures.se
About Front Ventures AB (publ)
Front Ventures is a Nordic investment company, specialized in helping innovative companies in the areas of Defense and Fintech to scale up their business. Front Ventures acts as a financier and catalyst in the phase where growth opportunities are greatest. Front Ventures’ B-share is listed on the NGM Nordic SME trading platform.
