In a significant development for Canada's defence industry, the CEO of Swedish aerospace giant Saab has revealed that the company is in active discussions about building its Gripen fighter jets on Canadian soil, a move that could create up to 10,000 new jobs.
A Sovereign Capability for Canada
Micael Johansson, President and CEO of Saab Group, stated in an interview with CTV News that his company is prepared to facilitate a major technology transfer to Canada. This would enable the Royal Canadian Air Force (RCAF) to not only operate the jets but also to build, assemble, and upgrade them domestically.
"If Canada wants to create sovereign capabilities and to do their own upgrades, to build parts of it, to do final assembly and test, we are prepared to do that," Johansson said. "We could do a technology transfer to Canada and support that build up."
Context of the Canadian Fighter Jet Procurement
This proposal emerges as Canada's existing plan to purchase F-35 fighter jets from U.S.-based Lockheed Martin faces renewed scrutiny. While Canada has committed to buying 16 F-35s with an option for 72 more, the procurement strategy is now under review by Prime Minister Mark Carney's government.
Concerns have been raised about the level of control the United States maintains over the F-35 platform, including proprietary software and parts. This issue of sovereignty has become more pressing amid a noticeable erosion of trust between the U.S. and some of its allies, including Canada.
Strategic Timing and Economic Impact
The timing of Johansson's interview is strategically significant, occurring just one week before a Swedish royal delegation, led by King Carl XVI Gustaf and Queen Silvia, is scheduled to visit Canada. The visit is intended to strengthen economic and defence ties between the two nations.
The potential for a 10,000-job boost would represent a major economic stimulus for the Canadian manufacturing and technology sectors, creating a sovereign aerospace capability that has long been a goal for Canadian defence planners.