Saab strengthens position in India
Defence and security company Saab has signed a MoU (memorandum of understanding) regarding a strategic investment in the Indian company Pipavav Defence and Offshore Engineering Co Ltd. In conjunction to this the companies have signed a technical partnership agreement (TPA). The TPA is a continuation of an ongoing cooperation between the two parties and covers details about the format for further cooperation and relevant projects.
These agreements are a step in Saab’s strategy to increase the presence in an important and large market and offer business possibilities for several parts of the organisation. The MoU covers an investment by Saab of approximately SEK 250 million through a suitable structure, subject to all necessary approvals, during coming months.
“Saab has a long-term strategy to grow in India and this new agreement is one important step in that direction,” said Håkan Buskhe, President and CEO at Saab.
“This agreement has the potential of offering new business opportunities for Saab’s naval offer and we welcome the possibilities this presents to further develop our offering to a global market,” said Jan Widerström at Saab.
The two companies earlier jointly formed the Combat System Engineering group, which analyses naval combat system design and architecture. The companies are also exploring next generation combat management systems for the Indian Navy and Coast Guard. turer of strategic defence and aerospace products and solutions and a growing player in African and global defence markets.
“Denel is a strategic national asset for South Africa and as a state-owned company we will play a growing role to contribute to national objectives in terms of skills development, research and the growth of a viable high-tech manufacturing industry,” he says.
The changes to Denel follow the appointment of Riaz Saloojee as new Group Chief Executive Officer in November 2011. The stateowned company has reported a profit of rand41 million for the 201112 financial year and generated cash of rand210 million.