re-structured

defence industry

is now firmly

established as the

fifth largest in

western Europe.

One of the world's most technologically advanced weapons producers, the Swedish defence industry has developed systems that cover almost the complete range of military hardware and include fourth-generation fighter aircraft, guided weapons, conventional submarines, armoured vehicles, artillery, stealth naval vessels and a very wide range of defence electronics.
In the course of the past decade a major re-structuring of the Swedish defence industry has taken place that has resulted in a significant decrease in the numbers employed in the industry that are down from 36,000 to 18,000. Sweden's foreign policy that has become more active since the end of the cold war has meant an increased international orientation of its defence industry. No longer is self-sufficiency in defence equipment an over riding national objective. Sweden's defence industry has had to find new international markets and trading partners or face an uncertain future that could have led to its complete demise.
In 1996 domestic sales amouned to $1 .4 billion and exports to $533 million. The best selling items included armaments, armoured vehicles and naval vessels.

Saab

The most well-known Swedish defence company is undoubtedly Saab AB, that is a key player in the JAS Industrial Group (IG) consortium that also includes such famous engineering and electronic manufacturing names as Volvo, Ericsson and FFV Aerotech. JAS IG is responsible for the domestic production of the JAS 39 Gripen fourth-generation combat aircraft. This outstanding performer is the first aircraft in its class to enter frontline service anywhere in the world.
In June 1997 the Swedish air force ordered a third batch of 64 aircraft that will bring its total ordered so far to 204.

The Saab military aircraft division employs just over 3,500 people at its Linkoping plant where work on the Gripen and Saab S100B early-warning aircraft has been taking place, this latter project is particularly important because it involves the installation of the newly developed Ericsson Erieye radar.
Saab Dynamics AB produces a wide range of guided weapons that includes the RBS15 anti-ship missiles, AU M/90E anti-submarine depth charges and STRIX smart guided-mortar rounds. The company is also heavily involved in the development and production of sensors and fire-control systems for air, ground and sea weapon systems.
Saab Dynamics AB also is working in co operation with Matra BAe Dynamics on the development and production of the Meteor beyond-visual-range missile and with Germany's BGT on the IRIS-T dog-fighting missile. Saab Training Systems AB is a European leader in the development and use of laser-based training systems for gunnery and combat training of ground forces.

Celsius

The previously state-owned Celsius Group has been transformed recently into a profitable part of the private sector, although the Swedish government has retained a 25 per cent golden share of the group's equity. By the end of this year the company will have been almost entirely re-structured. The group's Bofors company had the largest turnover of any Swedish defence company in 1996, selling ground-based guided weapons, cannons, anti-armour weapons and weapon-system packages for the CV9O and Leopard armoured vehicle.
Among many development projects underway are smart artillery shells, the BAMSE air-defence missile system and the Taurus air-launched weapon.

Another important division of the Celsius Group is the Bofors Underwater Systems company that is a leading producer of torpedoes, mine- clearing systems and remotely operated underwater vehicles. Celsius Tech Electronics AB produces a wide range of defence electronics and optronics, and has developed particular expertise in the design and build of aircraft self-protection systems. It is also the prime contractor for Sweden's STRIC air-defence command-and-control system.
The Kockums naval company has established itself firmly among the world's leading designers and builders in the conventionally powered submarine market with the Gotland-class boats. The company's Karlskronavaret subsidiary is heavily engaged in designing the Visby class stealth corvette that will enter service with the Swedish navy.

As a world-renowned engineering group, Volvo has justified its wide acclaim in many areas including its Aero Corporation entity that is a primary factor in the Gripen programme, modifying and enhancing the American General Electric F404/GE-400 turbofans in the shape of the RM12 power plant for the Swedish fighter. Marine gas turbines for warships also are a speciality of Volvo, as are its high-quality military vehicles.

Hagglunds

Hagglunds Vehicle AB has had the dubious distinction of being the first major Swedish defence company to fall under foreign control. This happened when Britain's Alvis bought control of the company in late 1997 from the Incentive AB holding group.

The British company has gained major armoured-vehicle production facilities in Sweden and Norway along with contracts to produce the combat vehicle 90 infantry-fighting vehicle for the Swedish and Norwegian armed forces.
Bv 206 all-terrain vehicles also are a very important product line and an acknowledged worldwide best seller for the company. Hagglunds also is co-producing Leopard 2S main battle tanks that will go into service with the Swedish army.
Hagglunds' Barracuda Technologies AB subsidiary has developed into a leading specialist producer of camouflage netting and other deception/decoy technology.

Ericssons

The Swedish telecommunications giant that has gained worldwide success in communications technology has significant defence interests that are held in Ericsson Microwave Systems and Ericsson Saab Avionics. Ericsson Microwave Systems produce the Erieye airborne early-warning radar and the multi-mode pulse doppler radar for the Gripen. The company also is involved in the Giraffe ground bases' air-defence radar, data links, missile electronics and military communications systems. Ericsson Saab Avionics is a 50:50 partnership that has developed and produced the EP-1 7 display system for the Gripen, the RMS reconnaissance management system, the ERIJAMMER electronic countermeasures system and other airborne computer systems that have attracted much attention.