Defence Business: SAAB weighs up Future Submarine | ADM May 2014

Another option for Australia’s SEA 1000 Future Submarine program has become clear in very recent times, with the news that SAAB has been directed by the Swedish government to explore the possibility of creating a submarine design and construction capability.

SAAB currently has no submarine design and construction expertise or even facilities to build them in although it is recruiting within Sweden and looking for international partners, which may provide significant opportunities for ASC here in Australia.

Sweden is looking to acquire two Next Generation Submarines (NGS), formerly known as the A26 class, to replace two A17 Södermanland class submarines acquired in the late 1980s but modernised about ten years ago. It is also looking to carry out a Mid-Life Upgrade on its’ three newer A19 Gotland class boats. 

The contract to design and build the A26 was awarded to Kockums, part of the ThyssenKrupp (TKMS) group, in 2010 but despite negotiations between Sweden’s Försvarets materielverk (FMV) – roughly equivalent to Australia’s DMO – and Kockums’ German parent, a satisfactory agreement could not be reached.

SAAB study

Sweden considers submarines and fighter aircraft the two capabilities it must keep strategic control over and government dissatisfaction with the submarine program resulted in the unprecedented announcement by Defence Minister Karin Enström in early April that there was no basis to move forward with discussions.

The Minister also said she considered it important that Sweden retained state control over intellectual property, telling local media that the country had a unique submarine capability and her government wanted to keep it.

“I can assure you that it is not common in Sweden for the government to actually say someone is not good enough to supply Sweden with one of the two most important systems or capabilities we have,” SAAB head of Marketing Area Nordic & Baltic, told ADM.

“The rationale behind this is that Sweden needs to have control over the two extremely important industrial and military capabilities, fighter jets and submarines. Sweden needs to have control over the intellectual property and they also need somehow to have a cost share with someone else.”

On February 27, some time prior to the defence minister’s announcement, the FMV awarded SAAB a SEK 25 million (A$4.1 million) contract to ‘examine the pre-requisites for a consolidated strategy to support the underwater domain.’

Carp says that SAAB  has yet to make a final decision on whether to enter the submarine business, but it has been actively recruiting skilled personnel from within Sweden, most of whom (by default) come from Kockums.

Because Kockums still occupies the existing facilities at Malmö and Karlskrona, SAAB is giving careful consideration to where it would establish its own submarine centre.

“We know that for instance the Swedish government owns most of the Muskö base south of Stockholm that could be used and there are also military docks in Karlskrona that could be used,” Carp said. “It is very clear there are two places in Sweden where there are competencies, and it’s Malmo for the submarine design component and Karlskrona for the shipyard. I don’t see that it’s feasible to build a completely new shipyard somewhere else.”

Australian opportunities

Given SAAB has been tasked by the Swedish Government to study the feasibility of establishing a submarine capability, the company is looking around for potential synergies with some international partners in terms of submarine projects, as well as leveraging local industry.

With ASC now well into the Collins class submarine sustainment cycle and SEA 1000 on the (yet distant) horizon, Australia is a logical partner.

“Saab is of course interested in Sea 1000. We have, as you know, quite a large unit in Adelaide and on February 28 we announced that we will have a maritime centre there. We are also part of the Collins program with the ISCMMS (integrated submarine control monitoring and management system),” Carp said.

With the possibility that the Australian government may sell ASC in the near future, would SAAB consider buying the Adelaide-based operation?

“We are looking into expanding our presence in Australia and we are impressed by the company. They’ve built up a very good business there, both with submarines and air warfare destroyers. But we need to look into that when it happens,” he said.

Carp points out that the Swedish Mid-Life Upgrade to the Gotland-class coincides with the Collins SLEP and both countries are looking for a Future/Next Generation submarine. FMV director general, Lena Erixon has flagged that some of the work on the Swedish boats could be done in Australia.

“We may also share the work with Australia and Poland,” she said. “In Australia, there is considerable interest in a partnership regarding submarines.”

Although noting that any decision would be for the Swedish and Australian governments to make, SAAB’s Anders Carp says both option 3 (evolved Collins) and option 4 (new design) are of interest.

“Option 3 is of course extremely interesting because it’s an evolved Collins but I think both options are of interest to Sweden,” Carp said.

“We have a huge interest in increasing our presence in the country. Sea 1000 is one of the largest and most interesting programs and its Australia’s biggest program ever and being in the defence industry you’d be kind of stupid not to be interested in it.”

Disclaimer: The writer travelled to Sweden as a guest of SAAB.