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Mirthe Luria

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Jul 12, 2024, 11:32:38 AM7/12/24
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Swedish defence major Saab on Monday started construction on its new manufacturing facility in India for its iconic Carl-Gustaf M4 weapons with a formal groundbreaking ceremony. The facility is being built in the State of Haryana at MET City at Jhajjar in Haryana. The State has a strong industrial base of good potential partners and skilled employees, the company said.

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After receiving approval of 100% foreign direct investment, Saab has established a new company, Saab FFVO India Pvt Ltd, which will fully own the new manufacturing facility and produce the Carl-Gustaf M4 weapon, the company said.

The older versions of the Carl-Gustaf and older ammunition are manufactured in India by the Ordnance Factory Board and now by the newly carved out Defence Public Sector Undertakings and Company officials had said in the past that they will continue to manufacture them.

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New Delhi: In a setback to the ambitious strategic partnership initiative to build six conventional submarines under Project 75 India (P-75I), Swedish defence major SAAB has withdrawn from the project saying there has to be a rethinking on the policy.

SAAB had flagged concerns to MoDThe SAAB chairman said while the firm has responded to the Request for Information (RFI), they had in their multiple meetings with the Navy and the Ministry of Defence flagged their concerns too.

Defence sources also confirmed that foreign OEMs have raised concerns about the SP model, not limited to submarines alone. Under the SP policy, an Indian vendor will hold 51 per cent stake in the project, thus taking away control of the special purpose vehicle (SPV) that is to be formed with the foreign OEM.

The OEMs, on their part, have said it makes them liable for any malfunction and they cannot guarantee quality products and also abide by the timelines as sought by the government. Rignell said that SAAB was offering the Indian Navy A26 submarines, which are currently being built for the Swedish Navy.

When told that Russia is pushing for a government-to-government contract with India to build submarines, Rignell said SAAB cannot comment on it but added that the Indian government can talk with its Swedish counterpart for the same if that is what is being thought of.

South Korean company joins race for P75IEven as SAAB has stepped out, South Korean company Daewoo Shipbuilding and Marine Engineering has been extended a late invitation by the Indian Navy to present technical bids for the contract last month.

SAAB may be the only firm which has a functional AIP system, that is being supplied to other submarines also. But here the main focus is in ensuring that either Adani or Ambani gets the contract. All other consideration are secondary.

Swedish defence major Saab on Monday announced that it will start producing the iconic Carl-Gustaf M4 weapon systems at a production facility in Haryana by next year, months after receiving the approval for 100% foreign direct investment for the mega-project.

After receiving approval for 100 per cent foreign direct investment, Saab established a new company, Saab FFVO India Pvt Ltd, which will fully own the new manufacturing plant and produce the Carl-Gustaf M4 weapon.

"I am proud to start constructing our first facility outside Sweden for Carl-Gustaf, a product that has a long history with the Indian Armed Forces," Gorgen Johansson, Senior Vice President and Head of Saab's business area dynamics, told reporters.

"Today is an important milestone for Sweden and India. Saab's factory will be the first foreign fully-owned defence production facility in India. It is a testament to the strong bilateral relationship between our countries," Jevrell said.

At the new factory, Saab will deploy complex technologies including the latest sighting technology and advanced carbon fibre winding to manufacture Carl-Gustaf M4 for the Indian armed forces, and components which may be included in other users' systems.

The Carl-Gustaf system has been in service with the Indian Army since 1976. Through its wide variety of ammunition, Carl-Gustaf has emerged as a key shoulder-launched weapon in the Indian Armed Forces.

Swedish Television (SVT) has reported that the Swedish sports car producer Koenigsegg has agreed with Norwegian investors to take over the long-troubled but still-well-regarded carmaker SAAB. Details reportedly are being worked out in Zurich.

SAAB, which has been owned by now-bankrupt General Motors for the past nine years, has been plagued by a dive in car sales and heavy losses. The company sold 133,000 cars in 2006, but just 94,000 last year.

The cars remain popular and fears of a SAAB bankruptcy have severely shaken Swedish industry at a time when the entire country is suffering a major economic downturn. Efforts to save SAAB have been going on for months.

Koenigsegg, which makes exclusive, ultra-high-priced sports vehicles, has strong Norwegian ties itself. Fredrikstad-based industrial designer Brd Eker owns 49 percent of Koenigsegg through his holding company Eker Group. He supplies Koenigsegg cars to the Norwegian market and also has been involved in their design.

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