Saab 2014 Annual Report Download - page 18
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12
Number of employees in the market area
3%
Share of global defence materiel spending
2016 – 2020
3%
Average annual growth 2016 – 2020
LATIN AMERICA
Defence spending in Latin America has grown in recent years.
In 2014, the increase was 3.2 per cent, and growth is expected to
continue in the years ahead. Brazil, which accounts for about half
of the region’s defence spending, has an ambition and the resources
to develop a diversied defence industry.
Saab’s commitment to the Swedish Brazilian Innovation &
Research Center (CISB) continued in 2014. Among other things,
around ten Brazilian researchers have been working at Swedish
universities under the auspices of CISB.
Order and sales trend
In October 2014, a contract was signed with the Brazilian govern-
ment (through the Aeronautics Command, COMAER) covering
the development and production of 36 Gripen NG ghters for the
Brazilian Air Force. e total order value is approximately SEK 39.3
billion. Saab and COMAER have also signed an industrial co-operation
contract to deliver substantial technology transfers to Brazilian
industry. e agreement will take eect when certain criteria are met,
which is expected in the rst half of 2015, at which point Saab will
recognise the order. In March 2014, the Brazilian Army ordered
man-portable launchers, missiles and associated equipment for
the RBS 70 VSHORAD very short range air defence system.
NORTH AMERICA
e US and Canada accounted for about 37 per cent of global defence
spending in 2014, but budgets were reduced by 1.0 per cent during
the year. e decrease is expected to continue for another year before
spending levels o.
Saab and Boeing continued to jointly develop an advanced
training aircra, with the goal of participating in the US Air Force’s
upcoming T-X programme.
Order and sales trend
Among other things, Saab signed a new, ve-year framework
contract during the year with the U.S. Special Operations Command
(SOCOM) for the Carl-Gustaf weapon system, for a total value of up
to about SEK 1.3 billion. Carl-Gustaf was named a Program of
Record by the U.S. Army, which means that it could become standard
equipment for the U.S. Army’s light infantry.
Saab was also awarded a contract for a Water Borne Improvised
Explosive Device Remotely Operated Vehicle in co-operation with
the U.S. Underwater Hazardous Device Team.
In Canada, Saab received orders for processors and displays for
Textron’s Tactical Armoured Patrol Vehicle (TAPV), as well as a
support contract to modernise a number of Halifax class frigates.
608
Number of employees in the market area
36%
Share of global defence materiel spending
2016 – 2020
1%
Average annual growth 2016 – 2020
MARKET
MARKET AREAS
14 – SAAB ANNUAL REPORT 2014