Swedish weapons manufacturer Saab AB said it’s hiring and ramping up production capacity as demand for its products is expected to benefit from a surge in defense spending across Europe as well as the Nordic nation’s pending entry to NATO.
(Bloomberg) — Swedish weapons manufacturer Saab AB said it’s hiring and ramping up production capacity as demand for its products is expected to benefit from a surge in defense spending across Europe as well as the Nordic nation’s pending entry to NATO.
Saab is preparing for an influx of orders by investing in increased capacity and by recruiting the right competences, Chief Executive Officer Micael Johansson said in an interview, while acknowledging that procurement processes in the defense industry tend to “take time before being translated into orders.”
Saab is working through a 112 billion-kronor order backlog, the highest in several years. Last quarter, the company decided to set up a manufacturing facility for the Carl-Gustaf M4 shoulder-launched weapon system in India and plans to continue building up its Ground Combat business in Sweden and the US.
“We have seen a net increase of 500 employees so far this year and we expect to recruit another 1,000 globally,” Johansson said. The company is looking for skilled engineers specialized in artificial intelligence, cloud technology, cyber security and software, the CEO said.
“But we also need good welders for our operations in Saab Kockums, to build submarines, so we are looking at a a pretty broad spectrum of competences,” he said.
The “awakening” around defense spending after Russia launched a war on Ukraine in February has strongly contributed to boosting Saab’s business and valuation, the CEO said. Its shares are up as much as 65% since the beginning of the year in an otherwise depressed market.
“It’s good for Sweden and it’s good for Saab, if we can join NATO quickly,” Johansson said. The company is already working as if Sweden had already gained membership, he said.
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