Europe’s defence sector must collaborate more, says Saab boss

European defence industry needs to co-operate more closely on supply lines for Ukraine to avert production bottlenecks as well as understanding future weapon stockpiles, according to the head of one of the region’s biggest contractors.

Micael Johansson, chief executive of Saab, Sweden’s largest defence group, said some of the region’s key contractors should come together to consider which areas of production to prioritise and where they could co-invest in order to talk to governments in a “more consolidated way . . . to say, these are the bottlenecks, these are the investments needed to make sure we can cope”. 

Such an initiative could be facilitated by Nato or by the European Commission and “should be done without violating commercial sensitivities”, Johansson told the Financial Times in an interview at the Paris Air Show. 

Saab, which is privately owned with the Sweden’s Wallenberg family its main shareholder, produces the Gripen fighter jet as well as multiple weapons systems, including sensors and ammunition. It also makes the NLAW anti-tank missiles that Britain has been sending to Ukraine in their thousands. 

The company, like other weapon makers, has ramped up production significantly since the conflict in Ukraine. However, European industry has faced significant challenges after decades of under-investment and since manufacturers share many of the same suppliers, executives have warned of severe bottlenecks in the supply of ammunition and explosives.

According to Johansson, greater clarity was also needed on governments’ plans for future stockpiles of key weapons so that industry can invest. 

It was important to “understand the ecosystem,” he said, adding: “What is the deterrence level and [what are] the stock levels we have to have in different countries in Europe . . . It isn’t clear to me yet what level that is,” he said.

Johansson also warned that Sweden risks becoming “an island in the Nordic region” and its industry would be left out of future defence planning if the country is not able to join the Nato alliance. 

“Finland and the other countries go all in on the defence planning process and we still need to plan for a national situation without taking part in the alliance’s planning process which is absolutely not good,” he said. 

Russia’s invasion of Ukraine prompted European countries outside of the military alliance to rethink their security policies. Finland’s application was approved and the country joined Nato in April. Sweden’s membership bid, however, has been held up by Turkey which has raised several objections. Decisions on membership need to be made unanimously.

Johansson said he still had hopes of a positive decision when Nato holds a summit in the Lithuanian capital Vilnius next month. However, he said there was a difference between supporting Nato and actually being in the alliance.

“The planning is different. And the capabilities that would be potentially expected by us and the opportunities that we can reach would not be reachable if you are not really in the alliance,” he said.

Separately, Johansson said it was too early to say whether Sweden would still elect to join the tri-national partnership between the UK, Italy and Japan, which is collaborating on a next generation fighter jet. 

Sweden launched a joint study with the UK in 2019 to collaborate on a joint combat air development programme but that had now ended. The country has since launched its own study into a new-generation combat aircraft beyond the new Saab Gripen E which the company will participate in.

Johansson said he expected the study to take a couple of years and that the country could then decide whether to join another programme or agree bilateral partnerships.