German contract could be worth a quarter of a billion SEK to Woolpower

“We are seeing a clear increase in demand from these customers. More and more armed forces are recognising the value of garments developed to meet extreme demands while also being made to last,” says Linus Flodin, CEO of Woolpower.

The company sees the new German contract as further evidence that a market long regarded as an important niche is expanding. Several countries already purchase its products, with more joining them.

Owning its factory has become a strategic asset

As demand grows, another aspect of Woolpower’s business model has become increasingly important: the company owns its textile factory and controls much of the production chain, from yarn to finished garment.

A few years ago, Woolpower made its largest investment to date, building a new factory in Östersund. The investment doubled the factory’s floor space and created room for continued growth.

This sets Woolpower apart in a textile industry where production is often spread across multiple subcontractors and countries.

“We have chosen to keep production and expertise in-house. This has always been important for quality, but today it has taken on an additional dimension. For defence customers, it is also about knowing where production takes place and being confident that deliveries can continue even if the geopolitical situation deteriorates,” says Linus Flodin.

Woolpower manufactures in Sweden, within both the EU and NATO. As European countries strengthen their defence capabilities, supply chains and security of supply have become increasingly important.

“Being able to say that we manufacture here and control much of the value chain ourselves is a strength. It is no longer just about where a garment is made, but about our ability to keep delivering.”

Growing demand calls for greater capacity

The new contract with the German armed forces could be worth up to SEK 250 million to Woolpower. Together with a broader increase in demand from defence and other professional customers, this means the company needs to continue expanding its production capacity in Östersund.

“We need to be able to grow with demand and continue developing our production. This is positive for us, but it also demonstrates that it is possible to build competitive textile manufacturing in Sweden,” says Linus Flodin.

The defence business also has implications for Woolpower’s sales to professional users and consumers.

“When our products meet the demands of armed forces in the field, that also says something about their quality for other users. Whether you work outdoors or wear the garments in your free time, the fundamental requirement is the same: they need to perform in tough conditions and last a long time.”

About Woolpower
Woolpower manufactures merino wool base layers and insulating garments. The company manufactures in Östersund, Sweden, and sells to consumers, professional users and public sector organisations, including armed forces, police and emergency services.