The head of one of the region’s largest contractors said the European defense industry needed to work more closely on Ukraine’s supply lines to avoid production bottlenecks and gain visibility into future weapons stocks.
Michael Johnson, chief executive of Saab, Sweden’s largest defense group, said some of the region’s main contractors should get together to consider which areas of production to prioritize and where they could invest together in a “more unified way”. Talking to the government . . . arguably, these are the bottlenecks, these are the investments needed to make sure we can cope.”
Such a move could be pushed forward by NATO or the European Commission and “should be done without violating commercial sensitivities”, Johnson told the FT in an interview at the Paris Air Show.
Saab, a privately held company mainly owned by Sweden’s Wallenberg family, produces the Gripen fighter jet as well as a variety of weapons systems, including sensors and ammunition. It also manufactures thousands of NLAW anti-tank missiles that the UK sends to Ukraine.
Like other arms makers, the company has ramped up production significantly since the Ukraine conflict. However, the European industry faces major challenges after decades of underinvestment, and with manufacturers sharing many of the same suppliers, executives warn of severe bottlenecks in the supply of ammunition and explosives.
Johnson said there also needed to be greater clarity on the government’s plans for a future stockpile of critical weapons in order for industry to invest.
It’s important to “understand the ecosystem,” he said, adding: “What is the level of deterrence and stockpiling that we have to have in different countries in Europe . . . I don’t know yet what level that is,” he said.
Johnson also warned that Sweden risked becoming “an island in the Nordic region” and that if the country failed to join the NATO alliance, its industry would be excluded from future defense planning.
“Finland and other countries are fully invested in the defense planning process, we still need to plan for the national situation and not participate in the alliance planning process, which is absolutely not good,” he said.
Russia’s invasion of Ukraine has prompted European countries outside the military alliance to rethink their security policies. Finland’s application was approved and the country joined NATO in April. However, Sweden’s application for membership was blocked by Turkey, which raised several objections. Decisions about membership need to be made unanimously.
Johnson said he still hoped for a positive decision when NATO meets next month for a summit in the Lithuanian capital of Vilnius. However, he said there was a difference between supporting NATO and actually joining the alliance.
“The plans are different. If you don’t actually come into the league, we’re not going to have the capabilities that we might expect and the opportunities that we can have,” he said.
Separately, Johnson said it was too early to say whether Sweden would still choose to join the tri-nation partnership between Britain, Italy and Japan, which is cooperating to develop a next-generation fighter jet.
Sweden started a joint study with the UK in 2019 to collaborate on a joint operational air development programme, but that study has now concluded. The country has since started its own research on a new generation of combat aircraft, beyond the new Saab Gripen E that the company will be involved in.
Johnson said he expected the study to take several years before the country could decide whether to join another project or agree to a bilateral partnership.