Saab to co-produce air defence systems in Ukraine as part of defence industry localisation push

By Defence Industry Europe

Lithuania’s Defence Ministry announced the acquisition of the RBS70 NG mobile short-range air defence system (MSHORAD) from Swedish company Saab. The deal, valued at EUR 147 million, was finalized through the Defence Materiel Agency, with deliveries scheduled from 2025 to 2027.
Photo: Saab.

The Ministry of Defence of Ukraine has confirmed that Swedish defence company Saab has entered agreements for the joint production of air defence systems as part of the ‘Build in Ukraine’ initiative. The programme aims to integrate Ukraine’s defence industry into the European defence ecosystem and enhance its role in the global defence technology market.

‘Build in Ukraine’ encourages foreign companies to localise production within Ukraine, helping ensure faster delivery of military equipment to the Defence Forces while stimulating the national economy. “The ‘Build in Ukraine’ initiative demonstrates that Ukraine is shifting from the role of a recipient of defense assistance to a full-fledged partner in the production of modern weapons,” the Ministry stated.

Saab is among several international defence firms already involved in localised operations, alongside BAE Systems, Rheinmetall, and Northrop Grumman. These partnerships reflect a shift towards co-production and strategic investment in Ukraine’s defence sector during wartime.

The Ministry noted that more than 25 foreign companies are currently progressing through various stages of establishing operations in Ukraine. As part of this transformation, Ukraine is also drawing in firms specialising in advanced technologies such as unmanned systems, counter-drone capabilities, and cybersecurity.

By hosting joint production facilities for air defence systems, Ukraine is reinforcing both its national security and its industrial capacity. The Ministry added, “Ukraine is progressively emerging as a European hub for advanced defense technologies — a process that has become irreversible.”

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