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| Australian Collins class Submarine |
Australian Shipyard Is Another Possible Target
By GERARD O’DWYER
HELSINKI — The Swedish government’s drive to rebuild core national defense capacities is pivotal to Saab’s ambitions to develop a competitive submarine branch and become a major global player in this segment, government and company insiders say.
Saab is reportedly close to agreeing to a takeover price with ThyssenKrupp for shipyards operated by the German group’s subsidiary, ThyssenKrupp Marine Systems (TKMS), in Malmö, Karlskrona and Muskö, Sweden.
The acquisition of TKMS’ yards is fundamental to Saab’s quest to acquire the design and construction infrastructure it needs to secure state contracts ahead of taking over the A26 Next Generation Submarine and Götland-class fleet modernization programs for a cost of $3.5 billion.
Capacity acquisition will also be a vital component to Saab’s pursuit of an international partner, said Peter Hultqvist, chairman of the Swedish parliament’s Standing Committee on Defense (SCD).
“The wheels have turned,” Hultqvist said. “The government, possibly in response to Russia’s aggression in Crimea and the Ukraine, has decided that a strong industrial defense capacity that is Swedish-controlled will be the cornerstone that underpins defense policy and future capability.”
The government’s view is that a Swedish-controlled submarine capacity is the best means to release TKMS’ (formerly Kockums) dormant potential to produce world-class subs and surface naval vessels. It will also enhance Sweden’s ability to pursue international contracts, such as Australia’s proposed $37.5 billion Future Submarine program, Hultqvist said.
Anders Carp, senior vice president and head of Saab’s Nordic and Baltic market area, said that the company is looking to increase its presence in Australia and has not ruled out bidding for the Australian sub-builder ASC.
“We are impressed by the company [ASC]; they have built up a very good business there, both with submarines and the Air Warfare Destroyer. But we need to look into that when it happens,” said Carp, who also is in charge of Saab’s corporate responsibility for government affairs.
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