10,000 new jobs could soon come to Canada, Swedish manufacturer says

Swedish firm Saab’s president says a sale can bring thousands of manufacturing jobs and jet production technology to Canada. Genevieve Beauchemin reports.

CTV News is reporting from Sweden in the first of a multi-part series ahead of Swedish King Carl XVI Gustaf and Queen Silvia’s trip to Canada next week

STOCKHOLM — The Swedish manufacturer of the Gripen fighter jet, SAAB, says 10,000 manufacturing and research jobs could land in Canada if Ottawa adds the aircraft to its military fleet.

SAAB President and CEO Micael Johansson confirmed to CTV News during an interview at the company’s headquarters in Stockholm that he has talked to Ottawa about making Gripens on Canadian soil. He says companies including Bombardier and CAE, which are both headquartered in Montreal, as well as Nova Scotia-based IMP Aerospace and Defence, could be part of a deal.

“If Canada wants to create sovereign capabilities and to do their own upgrades, to build parts of it, to do final assembly and test, we are prepared to do that,” said Johansson. “We could do a technology transfer to Canada and support that build up.”

SAAB says it is open to creating a joint venture with a partner like Bombardier, or to simply deepen already existing collaborations.

The project could include either building a new facility or converting an existing one, with the first Canadian-made Gripen potentially flying off the assembly line within three to five years.

Johansson says that not only would the aircraft be for the Canadian Armed Forces, but other countries like Ukraine, which has already signalled its intention to add 100 of the jets to its fleet.

“If we’re going to ramp up production to support a big contract to Ukraine, we will need one or two extra hubs,” said Johansson. “It makes sense to have a big footprint in Canada together with Canadian industry, so it is absolutely a benefit for us to do that.”

Sweden, a country of roughly 10 million people, has a limited number of engineers and people who can work on production. Johansson calls it a win-win to partner with another country, especially one which is like-minded and shares concerns about Arctic sovereignty.

Canada has committed to buying 16 F-35’s with an option to scale up to 88. That stealth fighter is manufactured by the Lockheed Martin Corporation, an American defence and aerospace manufacturer.

Earlier this year, Prime Minister Mark Carney ordered a review of the purchase. A decision on whether to stick with the F-35’s or to go with a dual fleet that would also include Gripens has been up in the air since.

A large political and economic delegation from Sweden, led by King Carl XVI Gustaf and Queen Silvia, is heading to Canada next week. The visit will make stops in Ottawa and Montreal, with a goal of strengthening Canada’s military alliance with Sweden. Johansson is part of the delegation and a visit to Bombardier in Montreal is on the agenda, but there is no word as to whether Canada is close to making an announcement.

“Of course I would hope that it would be great for Sweden, for Canada and for Europe to have Canada on board with deeper relationships on security and defence-related business,” says Johansson. “But it’s up to Canada. We are not campaigning, we have been asked questions, and we are providing information for Ottawa, to make the decision.”