Manufacturing company HANZA has announced its plans to construct a new factory section in Töcksfors, Sweden, with an investment of Skr75m ($7.34m).  

The development is an 8,800m² extension to the company’s production facility located in the Swedish municipality, made in response to sustained high demand.

HANZA Sweden cluster manager Morgan Sahlin said: “We have a continuous increase in demand from many of our successful customer partnerships, such as the return management company TOMRA, the heat pump company Thermia and Väderstad, which is one of the world's leading companies in tillage and seeding.  

“This is a significant investment for HANZA Sweden that makes it possible to follow our customers' needs.” 

The new section is expected to become operational at the end of 2024. 

HANZA will also make specific investments in the machine park to bolster the assembly process.  

The company will install geothermal heat pumps in the new building, which will serve both the new and existing facilities, expected to result in energy savings.  

HANZA CEO Erik Stenfors said: “This investment supports our concept of complete, regional manufacturing and creates a very strong offering in the manufacturing cluster Sweden.” 

The expansion follows HANZA's recent acquisition of Orbit One, which has a factory in Ronneby, Sweden, specialising in circuit board manufacturing.  

The preliminary acquisition cost for 100% of the shares in Orbit One was approximately Skr367m.