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German Armed Forces/Woolpower Contract Worth $25 Million

Ivy Hughes

15 September 2026

Östersund, Sweden – Europe’s accelerating defense build-up is creating new business

opportunities well beyond the traditional defense industry. Swedish textile manufacturer

Woolpower has secured a new contract with the German armed forces that could be worth up to $25 million (SEK 250 million).

Around one-third of Woolpower’s business already comes from defense, police, emergency services and other public-sector customers. Demand from these markets is continuing to grow.

“We are seeing a clear increase in demand from this type of customer. More and more armed forces are recognizing the value of garments developed to withstand extreme conditions while also delivering long-term durability,” says Linus Flodin, CEO of Woolpower.

The new German contract is another indication that a market that has long been an important niche for Woolpower is now expanding. Woolpower products are already supplied to several countries, with more customers continuing to come on board.

In-house manufacturing becomes a strategic advantage

As demand increases, another aspect of Woolpower’s business model is becoming

increasingly important: the company owns its textile factory and controls a large part of its

production chain, from yarn to finished garment.

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

This gives Woolpower a different position from much of the textile industry, where production is often spread across multiple suppliers and countries.

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

Woolpower’s production is based in Sweden, within both the European Union and NATO. As European countries strengthen their defense capabilities, resilient supply chains and security of supply are becoming increasingly important.

“Being able to say that we have production here in Sweden and control a large part of the value chain ourselves is a strength. It is no longer simply about where a garment is manufactured, but about having the capability to continue delivering when circumstances become more challenging.”

Growing demand requires increased production capacity

The new contract with the German armed forces could be worth up to SEK 250 million for Woolpower. Combined with growing demand from defense and other professional customers, this means the company will continue to strengthen 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 is also proof that it is possible to build competitive textile manufacturing in Sweden,” says Linus Flodin.

The growing defense business also strengthens Woolpower’s position in the professional and consumer markets.

“When products meet the demanding requirements of a military operating 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 basic requirement is the same: they need to perform when conditions are tough, and they need to last.”

About Woolpower

Woolpower makes wool base and mid-layers in its own factory in Östersund, Sweden, where winter is a way of life. With roots dating back to 1969 and more than 25 years of family ownership, Woolpower builds garments designed to regulate temperature, resist odor, and last for years of hard use—warm at rest, breathable in motion. That performance comes from Ullfrotté, the company's proprietary terry-loop knit, a construction unique to Woolpower that insulates and breathes at the same time. Every layer is manufactured in Sweden through a controlled supply chain built on fair labor and long-term responsibility. Trusted by militaries and professionals who work in real cold, Woolpower is born in the cold and made for adventure. Learn more at woolpower.com.