Abstract: The Swedish (and European) instrument mechanical industry has experienced a crisis since they started to meet serious competition from Baltic and South East Asian countries some years ago. The biggest competitors nowadays come from China; this phenomenon has commonly been called the “Chinese threat”. Being aware of the seriousness of the situation, corporations in several European countries have decided to combine their strengths and form clusters (as e.g. in Portugal). In Sweden, so far, such forms of cooperation have been less common. The leaders of three firms in Middle Sweden – Modellteknik AB in Eskilstuna, T-mold AB in Tvärred/Ulricehamn and Formverktyg in Nynäshamn AB – decided to go together and form a cooperation in order to improve their chances of surviving in the global marketplace. Although these companies differ considerably in their routines and their traditions, and even though they are located in different areas, these firms are in the process of growing together to meet future challenges. The cooperation has taken a rather loose and flexible form, i.e. non-institutionalised, which leaves room for other potential firms to join the project.