Portugal has become an increasingly attractive market for Swedish companies, which see opportunities across a range of sectors. The more than 200 companies operating in the country employ over 18,000.
With products used every day by a billion consumers worldwide, the Swedish company Essity has chosen Lisbon as the location for one of its two shared service centres serving the entire group. This decision places Portugal at the heart of the strategy of the multinational, a global leader in the hygiene and health sector, which markets brands such as Tena, Libero baby products and Colhogar paper.
“The service centre [in Lisbon] is very important and serves the whole of Essity”, explains Per Lorentz, vice-president of Corporate Affairs, speaking from the company’s headquarters in Stockholm, praising the “rapidly growing ecosystem” that has put Portugal on the radar not only of Essity, but of more than two hundred companies from the Nordic country.
With €65 million in sales generated and 360 employees in Portugal, Essity is one of 260 Swedish companies that have already said ‘hej’ (hello in Swedish) to Portugal. Collectively, these more than 200 companies have generated €4.2 billion for the national economy over the last five years and employed 18,133 people in 2024, with an aggregate turnover of €13.1 billion over five years.
Established in 2019, Essity’s shared services centre located in Parque das Nações, Lisbon, has been gaining prominence and is one of the group’s two hubs worldwide — the second is in Santa Fe, Mexico.
“It’s a well-run operation”, Per Lorentz tells a small group of Portuguese journalists in Stockholm, explaining that the team in Portugal is responsible for customer management, administration, procurement, finance, human resources and information technology (IT). These are essential functions for the group, which operates in 150 countries.
Although the group has no factories in Portugal — supplies are sourced from its facilities in Spain — the manager explains the rationale behind the investment in the country: “We want predictability, stability and an economy that is growing, but not too fast.” And he offers a guarantee. “We will continue to grow in Portugal.”
In a very different sector, Epiroc – whose name means ‘in the rock’ and which operates in the mining industry by supplying surface and underground drilling and mining equipment, transport and loading equipment, hydraulic accessories and drill steel – is another Swedish company that sees opportunities in Portugal.
With a presence in the country at its headquarters in Oeiras and in Aljustrel, where it has a service centre, the company works directly with the country’s largest mine, Somincor – Sociedade Mineira de Neves-Corvo, acquired by the Swedish firm Boliden in November 2024. It is also present at Almina Aljustrel and is part of the Linha Ruby project for the Porto Metro.
As explained by Ola Kinnander, media relations officer for the company, which currently employs 52 people in Portugal, Epiroc remains on the lookout for new business opportunities in the country. When asked whether the company would be interested in work on the Lisbon Metro, he was unequivocal: “We would always be interested.”
Currently involved in innovative projects, such as the creation of the largest autonomous mine in Australia through the conversion of Roy Hill, Epiroc has also been investing in electrification, with the development of batteries, and in automation. With its headquarters built atop an artificial mine, which operates from a shelter constructed in 1938, the company uses the 3.3-kilometre tunnel to test its drilling machines.
Regarding the conflict in the Middle East, Ola Kinnander acknowledges that “it is an important area where there are many business opportunities” and a region where the company wants to establish a presence and grow. However, in light of the war in Iran, for the time being, it will wait and see how things develop.
Saab wants to fly in the skies over Portugal
At a time when the defence sector is gaining significant importance and Portugal is preparing to make substantial investments, Saab, which is in the running to replace the Portuguese Air Force’s F-16s, is stepping up its efforts to secure a share of these investments and is once again highlighting local partnerships.
The manufacturer of the Gripen, competing against the US firm Lockheed Martin and its F-35 stealth fighters, as well as the Eurofighter consortium, to replace the Portuguese Air Force’s F-16s, admits that OGMA, with whom it has already signed a memorandum of understanding, “has great potential” to produce part of the Gripen fighters in Portugal.
The Nordic company is keen on an agreement similar to the one it secured in Brazil with Embraer, which controls OGMA in Portugal, a solution that would allow part of the investment to remain in the country. For now, “there is no formal process”, but Saab maintains that its fighters are “an excellent product for Portugal”.
Whilst awaiting the formal launch of the tender process for the purchase of new fighter jets for the Portuguese Air Force, Daniel Boestad, vice-president of Saab’s Gripen business, reiterated that the Swedish defence firm, which already supplies a range of products to Portugal, “will be there” when the process begins. Speaking at the company’s headquarters in Stockholm, where the firm showcased its latest products, Boestad emphasised that its aircraft “are an excellent product for Portugal, should the country so decide”.
Although the main focus in the domestic market is currently on the skies, the European defence giant’s products reach various branches of the security forces. From sensors to camouflage, the supply of bazookas or radars, Saab is present in the national defence sector.
Looking to the future, the sea could be another area of focus. The Saab A26 is a 5th-generation conventional submarine, initially developed by Saab for the Swedish Navy, characterised by its small size. According to Ingemar Karlsson, head of the Portuguese market, these small submarines are better at hiding, can remain underwater for longer, and have a hatch at the front capable of launching drones and special forces.
For the time being, these new submarines are in Sweden and have been selected by Poland. As for Portugal, Ingemar Karlsson says the country is looking into the matter but has not yet decided “what it wants”.
Responding to the Americans
Following a year marked by the imposition of new trade tariffs by the US, Anders Ahnlid, Director-General of the Swedish National Board of Trade, argues that the European Union (EU) “must respond to what is happening”. “The old system of globalisation no longer exists”, he points out, adding that “uncertainty will persist” and that the world is facing a “new era of trade”.
For Sweden’s head of international trade, it is important that the EU continues to prioritise new agreements such as the EU-Mercosur deal and the agreement with India. “We will see more agreements like these”, he predicts, citing the United Arab Emirates as another region with the potential to sign a trade pact with Brussels.
Last year, the US President announced the imposition of new customs tariffs on all countries. However, in a ruling handed down in February, the US Supreme Court found that Donald Trump had no legal basis to impose the tariffs announced on so-called ‘Liberation Day’, which plunged global trade into uncertainty. This ruling brought even greater uncertainty, as the White House leader responded to the Supreme Court by announcing further tariffs, vowing to impose them even if he has to do so by other means.
In addition to the instability surrounding the issue of tariffs, economies are now facing the effects of the conflict in the Middle East, which has pushed oil prices above $100 a barrel. This rise threatens to increase costs for businesses and households, as well as accelerate the rise in interest rates.
However, constraints outside Europe also present an opportunity for local trade, strengthening ties within the Old Continent. “As Winston Churchill said: never let a good crisis go to waste”, concludes Ahnlid.
* ECO travelled to Stockholm at the invitation of the Portuguese-Swedish Chamber of Commerce *
