Foreign defence suppliers currently have outstanding industrial cooperation obligations worth DKK 30.2 billion, which must be fulfilled in the coming years through cooperation with the Danish defence industry.
But according to Christoffer Husted Rasmussen, Partner at EY, far too few Danish companies are aware of the opportunities in this market.
- The market is shifting from short-term project agreements to long-term partnerships, and at the moment it is still fragmented, with no clear leader. That will only last until the first companies move decisively and secure the best partnerships. If you do not seize the opportunity now, it could be a long time before the door opens again, he says.
In Lolland-Falster, efforts are already under way to position the region in this market. Femern Belt Development and Business Lolland-Falster are currently working actively to attract defence companies to locations including Rødbyhavn, where Femern Port & Industrial Park is being developed around the large areas and facilities created for construction of the Fehmarn link.
- We are talking to many players in the defence sector about this area. We are working very intensively to attract strong defence companies to the Rødby area and also to South Zealand, says Stig Rømer Winther, CEO of Femern Belt Development.
He will not disclose which companies are involved in the talks or whether any discussions have progressed to the point where a specific establishment is on the table.
But he makes no secret of the ambition.
- Rødbyhavn simply offers unique opportunities to create a defence industry hub, and the foundations are already in place. Now it is about playing our cards right, he says.
Sees an advantage in the location
According to Stig Rømer Winther, the area stands out in particular because of the combination of existing infrastructure and its location away from densely populated areas.
Rødbyhavn has access by motorway, rail and sea, while the Fehmarn construction project will also leave behind large production facilities, dry docks and port infrastructure once the current activity ends. According to the FBD CEO, the distance from residential areas could be an advantage for companies in an industry where location and regulatory requirements can make new developments difficult.
- We are sitting on a silver egg on a golden platter, because this area can offer things that others simply cannot, says Stig Rømer Winther.
He also points to the planned large industrial area behind the tunnel factory, which is covered by the so-called fast-track scheme. The ambition is to create better conditions for large manufacturing companies that might otherwise encounter barriers in local planning and other regulatory processes.
Tunnel factory could be the next major asset
One of the biggest questions is what will happen to the facilities from the Fehmarn construction project once production of the tunnel elements ends.
According to Sund & Bælt, tunnel element production is now expected to continue until the end of 2029. The company cannot yet say when the facilities may subsequently be released for other uses.
That is precisely why political decision-makers need to act as soon as possible, says Stig Rømer Winther.
- We now have an opportunity to build a strong defence industry in an area that is ideally suited to it. It is not close to a city, but at the same time it is close to everything the industry needs. We need politicians to recognise that and act on it, he says.
He cautions, however, against expecting new establishments to happen quickly. As examples, he points to the political ambitions for new Arctic naval vessels and the process surrounding ammunition production in Denmark, where he believes there is often a long gap between ambition and action.
But if defence production can be attracted to Rødbyhavn, he sees potential that extends far beyond the individual factories.
- There is enormous upside potential in our defence industry, and it could mean a great deal for universities, research and industry as a whole, says Stig Rømer Winther.
