Saab 2014 Annual Report Download - page 26

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e contract further strengthens Gripens position
in the global market as a cost ecient combat
aircra system. Its relatively low lifecycle cost,
combined with Gripens capabilities and the oppor-
tunity for technology transfers, proved decisive in the
negotiations.
Deliveries are scheduled for 2019–2024 and
the initial order value is approximately SEK 39.3
billion. e agreement will take eect when certain
criteria are met, which is expected in the rst
half of 2015, at which point Saab will recognise
the order.
LONG-TERM INDUSTRIAL CO-OPERATION
Agreements on industrial co-operations with signi-
cant technology transfers are common in major
defence orders. In this case, Brazilian industry will
play an important role in the development process
and will be responsible for the manufacture of the
two-seater version of Gripen NG for the Brazilian
Air Force. Moreover, Saab was a founder the
Swedish Brazilian Innovation & Research Center
(CISB), which was established 2011 and will now
be further expanded. Saab is a member of CISB
along with a number of other Swedish and
Brazilian companies, government authorities and
universities. In addition to research collaborations,
CISBs activities include a scholarship program at
Swedish universities.
Industrial co-operations help to build skills and
stimulate growth in the buying country, but also
have a positive eect for Saab, which comes into
contact with new companies and forms partner-
ships that can result in new products and open up
new markets. e co-operations also support
Saabs strategy to be more local and come closer to
customers, to the benet of all the parties involved.
Saab has 30 years of experience with industrial
co-operations and is able to build trust by pointing
to previous successful collaborations that have
produced positive long-term results.
LONG HISTORY IN BRAZIL
Saabs and Swedens industrial history in Brazil
contributes to this trust. Saab has been active in the
country for nearly 70 years, including in commer-
cial aviation and surveillance systems. Several
large Swedish industrial companies have operated
in the country for years. São Paulo, where SKF,
Ericsson and Scania, among others, have plants,
is oen called “Swedens largest industrial city”.
ough important in itself, the Gripen order
from Brazil will also play a vital role as a platform
for new business. e deal has already greatly
raised Saabs prole in Latin America, increasing
opportunities for new orders in the region for
Gripen as well as other parts of Saabs broad
product range.
SAAB'S MARKET
CASE: SAAB IN BRAZIL
Saab has been active in Brazil since the 1950s and, in October 2014,
signed a contract with the Brazilian government on the development
and production of the next generation Gripen for the Brazilian Air Force.
The Brazilian Air Force’s
negotiating team visiting
Gripen production in Sweden.
22 SAAB ANNUAL REPORT 2014