How Snigel got their biggest order yet

SnigelDesign AB is a leading Swedish manufacturer of backpacks and protective gear that cater mainly for the armed forces, police and security services on the European market. For a mid-sized specialist company like Snigel, access to financing can be critical in order to expand production and build references, allowing them to compete on equal terms with larger companies. Contacts made through SOFF, a national association member of ASD, helped secure Snigel’s biggest deal to date.

The war in Ukraine has to a large extent  changed the attitude of banks and financial institutions towards the defence industry. Just a few years ago, banks were extremely reluctant to give loans to any company in the defence sector, especially to those wanting to ramp up production. In Sweden, that was mainly due to a downscaling of the country’s defence capabilities which had been ongoing since the fall of the Soviet Union. The defence sector was not prioritized and financing opportunities were focused increasingly on sustainability and the green transition.

When Snigel was given the opportunity to ramp up their business with a huge order, providing backpacks for the army of a major European country, they hit a roadblock. No Swedish bank would supply bridge financing or invest in their operations at that time. After months of searching for alternatives, Snigel secured financing abroad from a finance company in another European country. With this, they could finally expand their production capacity and reap the rewards of their hard work to win the contract.

Snigel attributes much of the success in this case to their membership in SOFF, the Swedish Defence industry trade organisation that is one of ASD’s national organisation members. Through SOFF and the member network, Snigel were made aware of possibilities and contacts that ultimately led to a successful outcome. In this way, ASD facilitates networking and information sharing that increases the competitiveness of not only the biggest, but also of the smaller, mid-cap companies that are represented in the national trade organisations that form a large part of ASD.