The Swedish defense company Saab is exploring the possibility of establishing a production facility in Canada for Gripen fighter jets, as it seeks to rapidly increase output to satisfy demands from Ukraine.
Micael Johansson, the CEO of Saab, mentioned in recent discussions with financial media that Kyiv’s interest in acquiring over 100 Gripen fighter jets would necessitate a doubling of the company’s production capabilities.
According to reports from the Financial Times and Reuters, Johansson stated that the company is evaluating options to enhance its production capacity, potentially in Canada or other European locations.
During the Canadian Aerospace Summit in Ottawa, Industry Minister Mélanie Joly expressed to The Canadian Press on Wednesday that this development is “good news,” noting her earlier conversation with Johansson on the same day.
“I have been actively engaging with Saab to explore how we can strengthen partnerships with Canada, starting with the GlobalEye [surveillance aircraft], and we are also ready to discuss how we can assist Ukraine,” she stated.
Canada viewed as ‘significant market’
The GlobalEye, a long-range early warning surveillance aircraft, is collaboratively produced by Saab and Bombardier.
“We are always open to increasing foreign direct investments in Canada,” Joly remarked. “We share a mutual understanding regarding our stance on security in Europe and Ukraine, and recognize the significance of our aerospace industry. Therefore, I believe there is substantial potential for collaboration between Canada and Sweden.”
A GlobalEye aircraft, produced by Saab Technologies, displayed during the 2019 Dubai Air Show. (Christopher Pike/Reuters)
Simon Carroll, president of Saab Canada, conveyed in a statement to The Canadian Press on Wednesday that the firm “considers Canada and its robust aerospace sector as a crucial market to accommodate a significant surge in global demand.”
“We are continually developing our relationships with Canadian companies to enhance our programs and products for both Canada and the export market,” he added.
The company did not disclose the identities of those it is in discussions with regarding the jets or potential locations for production.
Carroll remarked at the Canadian Aerospace Summit on Tuesday that the organization aims to increase exports from Canada, augment its operations there, and conduct more assembly work on the GlobalEye within the country.
Ukraine aims to strengthen mixed fleet
The aircraft are assembled in Mississauga, Ontario, while the final stages of production take place in Sweden, where they are equipped with radar and sensor technologies.
Previously, when Saab was advocating for Ottawa to procure its fighters as a substitute for the CF-18s, it asserted that Gripen jets could be manufactured and serviced in Canada. Ultimately, the contract was awarded to U.S. manufacturer Lockheed Martin for its F-35 stealth fighters.
Last week, Sweden and Ukraine entered into a letter of intent in anticipation of an export agreement that could send up to 150 Gripens to the conflict-affected nation. However, no contract has been finalized yet.
Ukrainian media sources have reported that President Volodymyr Zelenskyy is aiming to establish a mixed fleet comprising approximately 250 fighter aircraft, which would include F-16s, Gripens, and French Rafales.
The Gripens are prioritized due to their ease of maintenance and ability to operate from roads, alongside the relatively short training period required for their pilots.
An F-35A Lightning II fighter jet rehearses for an air show in Ottawa in 2019. The government is still deliberating on whether to proceed with a purchase of 88 F-35 fighter jets. (Adrian Wyld/The Canadian Press)
Canada deliberating F-35 acquisition
Meanwhile, Canada is still contemplating whether to move forward with its intended purchase of 88 F-35 fighter jets.
Prime Minister Mark Carney has called for a reassessment of the significant military procurement agreement in light of U.S. President Donald Trump’s global trade disputes.
During a recent parliamentary committee session, Secretary of State for Defence Procurement Stephen Fuhr indicated that the Department of National Defence has submitted the F-35 review report to the Prime Minister’s Office.
“I am confident the prime minister has reviewed the report,” Fuhr stated during the House of Commons national defence committee meeting on October 23.
“As you may have observed, several developments have taken place. The government has undertaken various actions, including this review, which is still ongoing. The critical aspect here, regardless of the duration, is ensuring we make the right choice. This is a substantial investment.”
Earlier in the month, Joly mentioned to Radio-Canada in French that the federal government has not dismissed the idea of a mixed fleet of fighters. She indicated that one possibility for Ottawa is to proceed with a limited fleet of F-35s while also acquiring a separate set of Gripens.
Joly visited Saab in Sweden in August and stated after her trip that Ottawa’s assessment of the fighter jet acquisition is fundamentally about safeguarding Canadian sovereignty, while also considering industrial advantages and job creation. Fuhr was also part of that visit.
Ontario’s Economic Development Minister Vic Fedeli had a meeting with Saab’s deputy CEO Anders Carp in Sweden earlier this month.
U.S. Ambassador Pete Hoekstra has expressed concern over the notion of Canada potentially obtaining a mixed fleet of fighters, warning that maintaining two separate fleets could be prohibitively expensive for a country like Canada.
