HELSINKI— With the clock ticking, Saab has pitched a late-hour proposal to the Australian government that could alter the outcome of that country’s submarine acquisition program, which had up to now been concentrated on bids by German and Japanese firms.
Australia’s Future Submarine project remains in a state of political flux after Prime Minister Tony Abbott’s ruling Liberal Party raised the possibility of the new submarines being built outside Australia. Such a move has been criticized by opposition leaders as a significant policy re-positioning action by the government that favors Japan’s Kawasaki/Mitsubishi’s Soryu-class offering. Germany’s ThyssenKrupp is offering its Type 214 design.
The Australian government has yet to confirm the exact number of submarines that will be ordered. The figure being discussed by Abbott’s Cabinet ranges from eight to 12.
Saab has informed the Australian government of its “readiness and capability” to deliver the advanced made-to-order next-generation submarines it requires.
Saab CEO Håkan Buskhe emphasized that while the company is not yet presenting a formal bid, it will do so if “the customer is prepared to listen to what we have to offer” and willing to open the competition to a bid from Saab.
The real motivation behind Saab’s “late-hour” declaration of interest in the AUS $20 billion to $30 billion (US $18 billion to $27 billion) Australian Future Submarine project stems from Saab’s $49.6 million acquisition, completed in July, of ThyssenKrupp’s submarine shipyard assets in Sweden. These are centered around the naval vessel design and construction company ThyssenKrupp Marine Systems (TKMS, formerly Kockums).
“It may seem late in the day for Saab to put a fresh offer forward, but I believe the good relations between Saab, and the history that exists between Kockums and the [Australian] Collins-class subs, validates the company’s decision to make this approach to the Australian government,” said Allan Widman, the Swedish Liberal Party’s spokesman on defense.
Saab’s acquisition of TKMS, which was strongly backed by the Swedish government, was partly driven by fears that ThyssenKrupp was not alone planning to dismantle the Swedish operation’s capability to design and produce large-sized submarines, but transfer related core technologies to Germany.
ThyssenKrupp, which owns German submarine maker HDW, acquired Kockums in 2005.
The Swedish government’s loss of confidence in ThyssenKrupp as a long-term partner to lead the Swedish A26-class submarine program was also based on a decision by the German industrial group to downsize TKMS’s export operations and restrict the company from the freedom to independently bid on major ongoing submarine construction projects in Australia, Singapore and Norway.
TKMS, which has been reorganized into Saab Kockums AB, is now on course to design and build Sweden’s new A26-class submarines and modernize part of the Royal Swedish Navy’s Gotland-class submarine fleet.