HELSINKI, FINLAND – On April 21, Defense News reported on Saab’s interest in taking over ThyssenKrupp Marine Systems’ (TKMS) shipyards in Malmö, Karlskrona and Muskö, Sweden, a move that could help Sweden “to rebuild core national defense capacities.”
In “Sweden’s Goals Fuel Saab’s Acquisitions – Australian Shipyard Is Another Possible Target” the publication covers Saab’s desire to become a competitive, international producer of submarines. Their first move seems to be focused on acquiring TKMS from German group ThyssenKrupp. This would give Saab the infrastructure needed to pursue state contracts, and the capacity to pursue an international partner, such as “Australia’s proposed $37.5 billion Future Submarine program.”
Vertical makes very little business sense. There are six submarine-producing nations in Western Europe, which is unsustainable…” —Christina Balis
However, this would add a submarine competitor to the European market, which Balis feels would “delay much-needed industry consolidation across the European naval sector.” Nationalistic, vertical integration of domestic capabilities that result in large industrial conglomerates may create jobs in the short term—a political boon—but without sustained demand for their industrial output, employment and capabilities will be at risk.
Read the full article here.