FXM undertakes the sales of surplus material on behalf of the Swedish Armed Forces. The Swedish Armed Forces is the agency that decides on sales in each individual case. The current re-orientation of the Swedish Armed Forces means that defence equipment becomes redundant and needs to be phased out. The Swedish Armed Forces then takes a decision on transferring equipment, primarily to:
- Voluntary defence organisations
- Humanitarian missions
- Military security-promoting equipment cooperation
- Purposes that strengthen societies under severe pressure (rescue services, etc.)
- Other central government agencies
If, instead, sales are to be made, these are always conducted on a commercial basis and take place mainly via:
- Intergovernmental agreements
- Re-sales to the original supplier
- Competition on the open market
Neither weapons nor ammunition is sold on the open market.
Sales may be undertaken via FXM itself. Equipment is sold only to business operators fulfilling the following requirements:
- They have a stable financial situation
- They are able to demonstrate experience of handling equivalent volumes of equipment
- They are able to present an acceptable plan for how the deal will be undertaken in practical terms
- They can show good references
- They can bid a reasonable price
Sales may also be undertaken on commission, in which both private persons and business operators may be the purchasers. FXM has entered into an agreement on this with a commission agent, Kvibergs Överskottslager. Kvibergs Överskottslager primarily sells Swedish Armed Forces’ vehicles and pallet materiel.
From 1 January 2016 the Swedish Defence Materiel Administration are responsible for the sales of the Swedish Armed Forces’ surplus material.
Commission agent – this is how it works
Cooperation with the commission agent is based on FXM, after having been given sales instructions by the Swedish Armed Forces, tasking the commission agent with collecting and selling the equipment in question within a specific time. The commission agent’s sales take place via web auctions, live auctions or sales on the spot.
The benefits of surplus sales
- Defence benefits: The re-orientation of the Swedish Armed Forces means that equipment becomes redundant and needs to be phased out. Surplus sales generate benefits to defence by transferring revenues to the Swedish Armed Forces and freeing up storage space. In some cases, equipment is sold that would have otherwise been destroyed, which may be expensive.
- Civilian uses: Much of the Swedish Armed Forces’ equipment can be used in civilian life. This applies, for example, to vessels that can be used for training or transport, helicopters that are used in rescue services or trucks for transport.
- Synergy effects: By selling surplus material to partner countries or potential partner countries, there are greater benefits for defence. When possible, FXM uses the sale of surplus material to strengthen cooperation with other countries. Sales may also be used for promotion purposes, in order to facilitate new business deals.