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Saab Eyes Australian Submarine Industry

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The Saab Gripen with standard camouflage? poised to shoot down Putin's Flankers.

MaritimeSecurity.Asia published the following article on April 20, 2014 which, in part, discusses Saab's possible interest in purchasing Australia's ASC (submarine building and maintenance company). Excepts [with interesting bits I've bolded in] this long article are http://maritimesecurity.asia/free-2/procurement-2/swedens-goals-fuel-saabs-acquisitions-defensenews-com/ :

Sweden’s Goals Fuel Saab’s Acquisitions – DefenseNews.com

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.
The Saab-Australian connection had earlier been flagged by Lena Erixon, the CEO of FMV, Sweden’s defense materials procurement agency.
“It is possible that the work may also be shared with Australia and Poland. In Australia, there is considerable interest in a partnership regarding submarines,” Erixon said.
The Royal Australian Navy’s (RAN) existing fleet of six Collins-class submarines are based on a Kockums design. This fact, coupled with the state-held ASC’s service and maintenance contracts with the RAN, has added a new dynamic to the prospect of a future Saab bid for ASC, which continues to be the subject of sale rumors.
ASC officials have not commented.
Australia has a requirement for 12 large conventionally powered submarines under Project Sea 1000 (Future Submarine). The choice has been narrowed to either an evolution of the Collins boat or a new design.
Saab, says Carp, is interested in both options.
“Sea 1000 is one of the largest and most interesting programs and it’s Australia’s biggest program ever,” Carp said. “Being in the defense industry, you’d be kind of stupid not to be interested in it.”
Saab sees synergies between Sweden’s A26 program and Australia’s Sea 1000 Future Submarine project, and is examining a possible partnership with ASC on new submarines and the upgrade of existing boats.
Another possible fit is Sweden’s planned midlife upgrade on its three A19 Götland-class submarines and the Australian Service Life Extension Program (SLEP) for its six Collins-class boats in the same time frame.
Saab and ASC constitute natural partners, Carp said.
Defense cooperation, including collaboration on submarine capability, was discussed when FMV officials visited Australia in recent months. Japan is also exploring cooperation with Australia.

Troubled Relationship

The emergence of Saab as a global player in submarine production would not be possible unless the company had the “wholehearted support” of the Swedish Cabinet, said an insider at FMV.
“Soon after ThyssenKrupp bought Kockums in 2005, there was a sense that the state had missed the opportunity to safeguard submarine building in Sweden,” the FMV insider said. “These fears intensified when Kockums’ project bidding role was removed to Germany at a time when it was working on bids for the Australian program as well as the prospective $4 billion Ula-class replacement program in Norway.”...
Pete

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