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Saab Global

Saab makes the operations more efficient

​As a part of a long term strategic adaptation to changing market conditions the operations within the Dynamics business area will be reorganised. Saab intends to serve notice to more than 200 employees. Moreover, The Electronic Defence Systems business area and functions within Corporate will be made more efficient. The total costs for these measures will amount to approximately MSEK 500.

"In order to grow and continue as one of the world's leading high technology companies, we have to be more cost efficient and develop products and services that are in demand now and in the future. These structural changes entail us to concentrate our operations through reducing the number of facilities as well as by making the company more efficient in areas where we have too high administrative costs,” says Håkan Buskhe, CEO for Saab.

The Dynamics business area will terminate its operations in Eskilstuna, Sweden, during 2012 and a part of the remaining production will be moved to Karlskoga, Sweden, starting in 2011. All employees in Eskilstuna will be served notice.

The underwater Vehicles operations, based in Motala, Sweden, within Dynamics, will be integrated with UK-based Saab Seaeye Ltd., to create a world leading company within underwater vehicles for the civil and military markets. A Swedish Seaeye office will be established in Linköping.

All employees within the Underwater Weapons and Sensors operations in Motala will be served notice. Under the condition that the ongoing discussions with potential clients lead to a long-term agreement, parts of the operations will instead be combined and integrated with Dynamics in Linköping.

Within Corporate, that comprises Group Staff and departments, currently an analysis is ongoing to identify measures to reduce administrative costs.

A dialogue has been initiated with the concerned trade unions and the notices will not affect the capability of Saab to meet its obligations.

"We will now start the restructuring process and the notices in collaboration with the trade unions with respect for both the individual personnel and our operations," says Håkan Buskhe.

Within business area Electronic Defence Systems, several efficiency measures are ongoing. The operations in Stockholm are gathered in one place, since the business in Kista is moving to Järfälla. The operation in Mölndal is gradually moving to Gothenburg in 2010 and 2011. Furthermore, detail construction and production within the microwave area are gathered in Gothenburg and Centurion, South Africa. This means that the microwave and antenna construction in Järfälla will be terminated.

The costs for all structural measures amount to approximately MSEK 500, of which more than half are in Dynamics. The costs will primarily affect the operating income in the fourth quarter 2010. The measures are expected to have a positive effect on the operating income amounting to approximately MSEK 200 on a yearly basis with full effect in 2012.

In order to remain competitive, Saab is continuing its evaluation of operations, and further notices cannot be ruled out.

Saab serves the global market with world-leading products, services and solutions ranging from military defence to civil security. Saab has operations and employees on all continents and constantly develops, adopts and improves new technology to meet customers’ changing needs.

For further information, please contact:

Saab Press Centre, +46 (0)734 180 018,

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The information is that which Saab AB is required to declare by the Securities Business Act and/or the Financial instruments Trading Act. The information was submitted for publication on November 10 at 08.30.