COMPANY PERSPECTIVE: Over the past year alone, Saab has hired 3,000 people and more will be needed. ”Now, more people realise the importance of having a European defence industry”, says Peter Hultin, head of Saab’s Brussels office.
Russia’s full-scale invasion of Ukraine in 2022 has not merely resulted in high death tolls and human tragedies; for the first time in decades, war in Europe has put European security at the top of the agenda. Following the outbreak of the war, Sweden and Finland applied to join NATO, and the Swedish defence company Saab has grown significantly as a result of the hostilities.
– We are a private, publicly listed company, and it’s no secret that we’ve grown, in part as a consequence of the war in Ukraine, says Hultin.
– We see, like many of our colleagues in the defence industry across Europe, an increased demand for our products and a growing recognition among countries of the need for a stronger defence capability.
He emphasises that the company’s mission is to keep people safe and secure.
– That’s why Saab was founded in 1937, and it’s why we are still active today. War is extremely destructive, and not something we want. But in a world where there are actors who are willing to threaten or attack others, nations need to ensure they are able to defend themselves and their populations, and that’s where we come in.
Saab has recently invested in a larger office in Brussels and expanded its staff from two to six employees. Also in Brussels, Saab is active as a member of the Aerospace and Defence Industries Association of Europe (ASD), Europe’s aerospace, defence and security industry trade body, with Saab CEO Micael Johansson currently holding the position of vice-chairman of the board. Other ASD members include Britain’s BAE Systems, the Franco-German KNDS and France’s Naval Group.
– For us, it’s important to collaborate with other defence industry players and stakeholders. That way, we can ensure that the political direction and the decisions made here in Brussels strengthen Europe’s defence capability and our industrial capacity.
– More people now realise the importance of having a European defence industry.
In March this year, the EU presented the European Defence Industrial Strategy (EDIS). This outlines a vision for the European defence industry policy up to 2035. The focus is on strengthening Europe’s defence industry.
– This includes industrial programs and the possibility to apply for funds to ramp up production rates sustainably and at a level that guarantees a sufficient defence capability.
Enhancing Europe’s capacity to produce defence materials is essential to avoid a situation similar to the one that occurred at the outbreak of the war in Ukraine, explains Hultin.
– Back then, many Member States panicked and purchased weapons from countries such as the US, Korea and Turkey. In the short term, this was necessary, but in the longer term, it’s far better if we can rapidly produce the defence materials that we need inside Europe.
– We believe that – irrespective of the political leadership in the US – Europe must maintain its own capabilities and the ability to defend itself. This is why we need to develop and manufacture the defence materials we need, here in Europe.
Since Russia’s invasion of Ukraine, Saab has received a number of billion-dollar orders, including for the Carl-Gustaf recoilless rifle. In the past year alone, Saab has added 3,000 net new employees, bringing its global workforce up to 24,000.
– Right now, we need to support Ukraine. In the long term, we also need to build our own capacity to produce our own defence materials.
– It’s challenging to find the people we need. Like many other industries, we are looking for specific competencies, such as software developers. This has made it difficult to identify and attract the right talent. So far, we’ve managed to recruit successfully.
In Brussels, the perception of the defence industry has shifted significantly since Russia’s invasion of Ukraine.
– Doors that were closed to us in the past are now open, says Hultin.
Attitudes have also changed in Sweden, where the company now regularly receives unsolicited applications. According to the latest survey by the magazine Ny Teknik, Saab is Sweden’s second-most popular employer among engineers.
– More people now realise the importance of a European defence industry. For us, it’s a positive development that we can now hold discussions with EU parliamentarians. They are now much more open to talking with us about what’s needed to ensure Europe can defend itself. More and more people now realise that we lack the defence materials and personnel required to protect our borders in the event of war.
He points out that there are various political initiatives in Europe to promote better collaboration between the industry and European countries.
– If we can harmonise our efforts and together develop competitive offerings in Europe, we will also compete better internationally.
– We want to see a more integrated and harmonised internal market to allow the EU to compete with large economies, such as the US and China. Paradoxically, we need more Europe to get ourselves out of this situation, and above all, we need better regulatory mechanisms.
With Finland and Sweden’s accession to NATO, it now means that 23 of the 27 EU Member States are also NATO allies.
– NATO is a defence alliance, and the EU should not be one. However, the EU should support its Member States by creating a better production apparatus, greater access to raw materials and more proactive support for supply chains.
There is now a dialogue between the EU and NATO on these issues. This is positive and helps ensure there is no duplication or conflicts over roles, Hultin concludes.
– Sure, there are some tensions, but that’s to be expected. It should not be an excuse to hinder joint investments in the EU or its collaboration with NATO.
Europe’s security will dominate the upcoming legislative period. In her ‘mission letters’, European Commission President Ursula von der Leyen has tasked several Commissioners to work on defence-related issues. Also, for the first time, there will be a European Commissioner focused solely on Defence and Space, with Lithuanian candidate Andrius Kubilius taking on the role.
Meanwhile, Finland’s Henna Virkkunen is expected to oversee the Tech Sovereignty, Security and Democracy roles, while Estonia’s Kaja Kallas has been nominated to become High Representative of the Union for Foreign Affairs and Security Policy. The increased focus on security within the next Commission is a positive development, believes Peter Hultin.
– We believe it’s important for the EU to continue driving industrial policy issues in order to help Member States build a much stronger deterrence capability.
– Further investments in the defence industry will be needed in the future, as they will be critical for Europe in building up the defence capability it previously lacked.
Saab is also active in the NATO Industrial Advisory Group (NIAG), a body comprised of industrial manufacturers from NATO member states.
– As an industry, we support Sweden’s NATO membership. However, we are not involved in specific NATO military issues unless they are industry-related.