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Estonia's CV90 Exit Won't Impact Joint Order

April 29, 2026

2 min read

Key Takeaways

Estonia exits joint CV90 procurement program.
BAE Hägglunds expects only marginal impact on production.
Company invests $300 million in Örnsköldsvik facility since 2020.
Additional $150 million investment planned for 2026-2028.

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Strategic Implications

Estonia's exit may raise the price per unit for other nations, but BAE Hägglunds' investment in production capacity suggests the company is committed to meeting demand. The joint procurement program could indicate a shift towards collaborative defense initiatives among European nations, which may have implications for the broader defense industry.

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What Happened

BAE Hägglunds Chief Downplays Effect On Production Plans

BAE Systems Hägglunds is downplaying the impact of Estonia’s withdrawal from the joint CV90 infantry fighting vehicle procurement program. According to Tommy Gustafsson-Rask, general manager of BAE Systems Hägglunds, the company expects only a marginal effect on production plans. The company has invested heavily in expanding its Örnsköldsvik facility, with $300 million spent since 2020 and an additional $150 million planned for 2026-2028. The joint procurement program, which includes Finland, Sweden, Norway, Lithuania, and the Netherlands, is expected to cover at least 500 more vehicles. This was reported by Breaking Defense.

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