Saab: Great opportunities to modernize Australia's submarines in the new safety pact

In mid-September, the United States, Britain and Australia announced that they were creating a new technological defense pact - Aukus.

One of the legs is to develop Australia's new submarine fleet, which will consist of at least eight long-range nuclear-powered submarines in the deep oceans.

The announcement created a deep diplomatic crisis between the EU and the US / UK.

France believed that Australia would buy conventional submarines from them.

- It definitely came as a surprise.

Like many others, we are still a little shocked by this news.

We compete with France in a number of other markets for conventional submarines.

The future of showing how the French industry is affected by this, says Lars Brännström, marketing and strategy manager for Saab's business area Kockums.

Swedish design

Australia's decision to buy nuclear submarines from the United States and the United Kingdom, instead of conventional attack submarines from France, probably means that the life of Australia's current submarines will have to be extended further compared to previous plans.

They have conventional submarines that were developed in Sweden during the Cold War.

- The Collins submarines are basically a Swedish design developed by Sweden and Kockums.

They were developed at about the same time as the Gotland class, which still operates in Sweden, says Brännström.

Saab estimates that it will take a very long time before the first nuclear submarines can be delivered by the USA and the UK.

This provides new opportunities for Saab.

- It is unlikely that anyone will be able to deliver a nuclear submarine before 2040. The Collins submarines must be extended for life.

40 billion contract

A contract to modernize Australia's current six submarines is worth 6.4 billion Australian dollars, according to the decision of the country's prime minister, which was announced in close connection with the submarine deal with the United States and Great Britain.

- With the experience we have from having done the upgrades on the submarines Gotland and Uppland in Sweden, which is about the same generation as the Collins submarines, we are well positioned to support a life extension program of the Collins submarines.

This is a contract worth SEK 30 to 40 billion?

- That is correct.

Then you should be clear about the Saab and Kockums section, which will primarily be about the design work.

A lot of production and development will be required on site in Australia.