Saab and MBDA to strengthen co-operation
End of January, Sweden and France have expressed their desire to strengthen their defence co-operation under a new strategic partnership signed on 30 January as part of French President Emmanuel Macron's state visit to Sweden. Anti-tank and air defence have been identified as priority areas for co-operation.
In this context, a major new step has been taken in the relationship between the two countries. Micael Johansson and Eric Béranger, the CEOs of Saab and MBDA, expressed their willingness to support this process in the fields of anti-tank and air defence, two capabilities identified as particularly critical for the armed forces of both countries, especially in the context of high-intensity conflicts. They signed Letters of Intent to strengthen the co-operation between their companies in these two fields, at the Business Forum organised in the presence of the highest French and Swedish authorities.
Co-operation in the anti-tank field has resulted in an initial focus on the AKERON MP. A first contract has been awarded to Saab and MBDA by the DGA, the French contracting entity, and the Swedish Defence Materiel Administration (FMV - Försvarets Materielverk). This will enable the pooling of Saab and MBDA’s expertise in the anti-tank domain, in order to support the Swedish and French armed forces' choice of the AKERON MP weapon system in the short term. This will also enable the implementation of a joint capability roadmap to develop new functionalities associated in particular with beyond line-of-sight firing, and also to prepare the missile to address the future generation of targets that will arrive on the battlefield. This roadmap will maintain AKERON MP's position as the benchmark weapon in its field, and an indispensable tool in high-intensity conflicts.
Saab and MBDA are long-standing partners, as illustrated by their co-operation on the Meteor air-to-air missile programme and the TAURUS cruise missile, as well as in the European MARSEUS consortium that aims to provide a sovereign European beyond line-of-sight missile firing capability.
Strengthening local economy
By 2030, the EU states are to handle at least 40% of their defence purchases via joint orders. This is a target set by the European Commission in order to strengthen the defence industry in Europe and meet the current geopolitical challenges. Half or more of defence purchases should also be made in Europe in order to establish independent and secure supply chains in the medium term. A development that will also benefit the non-military industry.
Industrial co-operation - in which defence companies work together with non-military industry, research institutions, universities or associations in a country - is common practice, particularly in connection with offset transactions. Spending on the defence industry is intended to ensure investment in the local economy and sometimes creates new jobs. The ongoing global crises such as the coronavirus pandemic and armed conflicts in Europe and the Middle East are currently making more and more countries realise how necessary an independent defence industry is in their own country or at least within a confederation of states such as the EU, and are calling for local business and industry to be involved in tenders in the form of collaborations. For defence companies, this in turn means that partnerships are becoming indispensable.
By 2030, the EU states are to handle at least 40% of their defence purchases via joint orders. This is a target set by the European Commission in order to strengthen the defence industry in Europe and meet the current geopolitical challenges.
Innovation through co-operation
The Swedish defence company Saab recognised the great potential of industrial co-operation many years ago and considers this to be a central component of its corporate strategy. Through long-term partnerships with local industry, research institutions, universities and associations, the company is strengthening its innovative spirit, driving the exchange of expertise, opening up new markets and providing opportunities for local companies to become active abroad. ‘For us, a collaboration is successful if it goes beyond financial success. It has to be a win-win situation for everyone involved,’ says Michaela Fecko, Director Industrial Co-operation at Saab. Even though partnerships are increasingly a must as part of contract awards, Saab is always looking for added value that goes beyond this. ‘Openness is particularly important to us. We are looking for partners who value a transfer of technology and expertise that creates new innovations and allows both partners to grow.’
Industrial collaborations offer great opportunities to open up new markets, and not just for defence companies. The partner company can also continue to grow and open up new business areas, as many examples show.
France
Saab Barracuda AB and Solarmtex S.A.S located in Vierzon France, signed in 2021 a co-operation agreement by which Solarmtex will be partner for the Saab Barracuda Signature Management and Camouflage products in France. The agreement between the companies includes two areas of partnership: A distribution agreement for Saab Barracuda products under which Solarmtex becomes the reseller of Saab Barracuda systems in France. A true industrial cooperation which foresees to entrust Solarmtex with the assembly of Saab Barracuda systems as well as logistic activities in connection with future deliveries to the French armed forces.
The goal is to invest in Solarmtex's capabilities over the long term to make it the preferred partner of Saab Barracuda in France and to increase the scope of industrial co-operation towards activities that create added value and jobs in the region: manufacture of camouflage nets, repair, training, demonstration and logistics services. Beyond a simple increase in skills, Saab Barracuda and Solarmtex aim together to develop new technical expertise on French territory.
Spain
In Spain, the Secretary of State of the Ministry of Defence has been insisting on the need to achieve weapon systems and defence capabilities in which the participation of national companies goes beyond the classic compensations and, as far as responsibilities and capabilities are concerned, to address much more intense industrial co-operation when working with foreign companies.
Saab and the Spanish company Sener Aeroespacial y Defensa, a subsidiary of the Sener Engineering and Technology Group, work closely together, participating in multinational programmes, such as the Meteor and IRIS-T air-to-air missiles, or the TAURUS cruise missile, a weapon on which Sener Aeroespacial y Defensa is working to apply mid-life improvements to replace different elements of the batch acquired by the Spanish Air and Space Army (EAE).
Sener Aeroespacial y Defensa and Saab form a cooperative tandem, seeking a commitment to transnational production and co-operation between companies from different countries, which can offer a great deal to future European defence programmes.
Austria
Together with the Austrian industrial company Test-Fuchs, specialised in the development and manufacture of test systems for aircraft components, Saab has concluded a contract for the mechanical workshop in the HAF (Hydraulic, Air, Fuel) test stand area for the Gripen E programme in Brazil. This makes Test-Fuchs the main supplier of the mechanical test bed solution for the Gripen system in Brazil.
Mobile hangar solutions make armed forces more agile. Saab and the Austrian company Fabspace Hangars have joined forces to develop a wide-ranging portfolio of mobile hangar solutions that are as robust as a building and still highly mobile. With the particularly robust DAM (Deployable Maintenance Facility) system the stability of a building and therefore greater security can be offered. However, this stability does not compromise mobility, as the systems are easy to transport and can be deployed in a very short time. With the container system, complementing the offer in context to mobile hangar solutions, a wide range of requirements that go far beyond the protection of an aircraft can be fulfilled.
Norway
As of today, Saab Technologies Norway has more than 40 collaborative projects with Norwegian industry for significant deliveries to the Norwegian Armed Forces. As a financially independent Norwegian company in the Saab Group, Saab Technologies Norway has an export share of 30 - 40%, and has extensive cooperation with Norwegian companies. Within the EDF (European Defence Fund) programme as well as with research institutions and academia Saab Technologies Norway has broad collaborations.
The Norwegian Defence Procurement Code contributes to local value creation by requiring Norwegian purchases for contracts worth more than NOK 50 million. This means that investment in defence also benefits Norwegian business and industry, both in the form of orders and competence-building co-operation. Expenditure on the defence industry is intended to secure investments in the local economy and sometimes creates new jobs. More and more countries are realising the need for an independent defence industry and are encouraging local businesses and industry to get involved in tenders in the form of collaboration. For defence companies, this in turn means that partnerships become indispensable.
Exchange of expertise and technology
‘Every co-operation is different and pursues different goals,’ says Michaela Fecko, Director Industrial Co-operation at Saab, ’which is why we monitor all markets in order to recognise potential early on and build long-term partnerships that you can rely on.’ Saab also attaches great importance to being a transparent partner at eye level. An open exchange of expertise and technology is at the centre of the collaboration, so that real innovation can emerge. A partnership should not only make economic sense. Stability, security and economic growth are certainly worth emphasising, but the benefits go beyond that. As a reliable partner, Saab is intensively involved in realising forward-looking projects and developing sustainable partnerships together with local players.
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