Saab signs Gripen E development contract
Saab has signed an agreement with the Swedish Defence Materiel Administration (FMV) for Gripen E. The initial contract is for 2.5 billion SEK, covering devlopment work in 2013 and 2014.
The agreement includes development and modification of Gripen E for Sweden during the period 2013-2026 and a possible order for new production of Gripen E from Switzerland.
The total value of possible orders under the agreement amounts to a total of SEK 47.2 billion. Remaining development work for Gripen E to Sweden of SEK 10.6 billion is expected to be signed in the first quarter 2013. Then, modification of 60 Gripen C to Gripen E with first deliveries to Sweden in 2018 is expected in the fourth quarter 2013 at the latest. Mission-specific equipment and support and maintenance for Gripen E to Sweden with initial deliveries in 2018 is expected in the fourth quarter 2014 at the latest.
In Switzerland, a possible acquisition of 22 Gripen E is to be processed in the parliament. The agreement therefore includes provisions of delivery of 22 brand new Gripen E, and related equipment toSwitzerland, if Switzerland decides to acquire Gripen E.
The agreement includes rights for FMV - conditional to certain pre-requisites - to fully or partly make cancellations. If so, Saab has the right to compensation for costs already taken and costs for discontinuation. The agreement also includes sections regulating the conditions should Switzerland decide not to acquire Gripen E.
“This is an historic event for Saab. We are proud to continue to deliver a world-leading fighter aircraft to the Swedish Air Force. Gripen has long been the backbone of the Swedish Air Force as well as for several other countries. This next step also creates more opportunities in the export market for many years to come. Our existing customers that operate the Gripen C/D version will also be able to take advantage of some of the development in their future upgrades,” says Saab’s President and CEO Håkan Buskhe.
“We are now entering a development and test phase which will occupy many of our existing employees. We also anticipate that we will need to recruit. The production will take place in Sweden with suppliers from several countries,” says Lennart Sindahl, Head of business area Aeronautics.
The technological steps that have been taken with Gripen E have been proven in the Gripen 39-7 E/F demonstrator program, where the test aircraft has flown more than 250 hours inSweden, the UK,India and Switzerland among others since 2008.