Saab plans to set up production in Ukraine amid growing demand
WARSAW, Sept 25 (Reuters) -Saab is looking to set up production in Ukraine to support the country's development of independent defence capabilities, the Swedish defence equipment maker's CEO told Reuters.
Russia's full-scale invasion of Ukraine in February 2022 has prompted a surge in demand for military equipment, with several Western manufacturers looking to set up production in Ukraine.
"We have to help Ukraine build sovereign capacity and capabilities, so we need to have partnership with Ukrainian industry in Ukraine and also Ukrainian industry that has moved outside of Ukraine," Saab CEO Micael Johansson said.
He added Saab was in talks with two or three companies on "how to establish local production", but an agreement was yet to be finalised.
Saab, which competes with the likes of U.S. giant Lockheed Martin, France's Dassault Aviation and Britain's BAE Systems, is seeing a boom in demand spurred by global tensions, the war in Ukraine, and Sweden's recent NATO accession.
Johansson said he saw potential for working with Ukrainian companies on drone capabilities. Ukraine could also be supplier of munitions parts and contribute to the development of sensor technology, he added.
Johansson said the arms industry was pivoting from donation-based aid to direct partnerships with Kyiv.
"I think we are sort of in a movement of going from having countries donating things to Ukraine, which will continue, of course, to having us as an industry delivering directly to the MoD (Ministry of Defence) and the defence forces in Ukraine, which has not happened completely yet, but it's starting to happen," he said.
Reporting by Barbara Erling
Editing by Mark Potter
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