Fredrik Gustafson, Head of Group Business Development at Saab AB, was in Lima participating in meetings to strengthen the brand in several fields, such as defense, where, in addition to taking part in the process to renew the combat fleet of the Peruvian Air Force, he is a partner of SIMA in the production of vessels.
Does the opening of Business Sweden offices in Peru have any relation to Saab, through the Gripen, taking part in the process to renew the FAP’s fleet of combat fighters?
The opening is not directly linked to the Gripen process, but rather is a reflection of the general strengthening of the commercial relationship between both countries. There are Swedish companies with more than 100 years of presence in Peru, which shows a historical and solid relationship. From Saab we see this opening as a positive sign that Peru is a priority country for Sweden in cooperation and joint development. Moreover, it makes it possible to work as “Team Sweden” and to strengthen initiatives in defense and in other areas of innovation and sustainability.
How is that process going, and in what way will it impact relations with Peru in other defense fields that also seek to modernize?
Saab is actively participating in the process and maintains constant dialogue with the Armed Forces. We know that a budget exists, and we are awaiting the next phase. If Saab were selected, this would drive collaboration in other defense areas that require modernization. However, even if we do not win this program, the relationship continues: Saab has worked with Peru for decades, especially with SIMA, which already produces our patrol boats in Callao and in Chimbote. The relationship with the Armed Forces will continue to be long-term.
Why do you consider that the Gripen is the best option to be used in the region compared to other systems such as the F-16 and the Rafale?
The Gripen E was developed for a country with an advanced threat but with a limited budget, which makes it a highly modern, flexible and cost-efficient system. Gripen E is a completely new aircraft and allows continuous upgrades through software without depending on the manufacturer. Moreover, it is more economical in operation and maintenance. It is an ideal solution for countries like Peru, which require advanced capabilities with operational sustainability.
Years ago, SIMA and Docksta Shipyard, a subsidiary of the Saab group, carried out the local production of Combat Boat 90 patrol boats. How was that experience, and how is the project progressing to date?
The experience has been very successful. The first four CB90 patrol boats were already built in Callao and have shown excellent performance both on the coast and in the Amazon. Recently a new contract was signed to produce new units, this time in the shipyards of Chimbote. Saab and SIMA have achieved a solid relationship based on technology transfer, which allows Peru to manufacture these vessels autonomously.
Has the experience with the CB90 patrol boats been the only one you have had in Peru, or are there others?
Saab has produced around 300 CB90s in the global market and has carried out local production in different countries, such as Mexico, where the IC-16 model was also built, a “sister” of the CB90 with very similar characteristics. In Peru, the main cooperation has been with SIMA through the CB90s, but global experience shows that this model of joint production works very well in different markets.
Part of Saab’s differential advantage in this type of contract is the model of technology transfer and industrial cooperation or offset. Could you explain what it consists of and what the advantages are for countries that contract with you?
Sweden is a small country, and Saab depends on alliances to develop cutting-edge technology. That is why our model always includes local industrial cooperation. This approach allows the purchasing country to have control, autonomy, and the capacity to maintain, operate and develop the acquired systems. We listen to the needs of each country and build joint models that may involve universities, local industries or even non-military sectors. Thanks to the Swedish network of companies, we can offer complete and sustainable solutions that strengthen national capabilities and ensure technological independence.
What other needs have you identified in Peru that could be solved with the technology that Saab currently offers?
Peru has key projects such as SIVAN (Amazonian and National Protection and Surveillance System) and also international surveillance, in which Saab can contribute capabilities such as ground radars, airborne early warning radars, electronic warfare systems, communications, command and control, and anti-air missile systems. With more than 400 products in our portfolio, Saab can comprehensively support the strengthening of national surveillance and the operational development of the Armed Forces. Currently, Peru is analyzing the requirements of its future short-range air defense system, where Saab offers the RBS 70 NG solution with a Giraffe 1X radar and a Mobile Short-Range Air Defense System (MSHORAD).
At what point is the defense industry in Latin America in general, and in Peru, in particular?
The region shows uneven development. Military shipyards are one of the most advanced sectors, with real export capabilities and complex programs for submarine and frigate modernization. In sensors and electronic systems, the situation varies by country. In the aeronautics industry, for example, Brazil stands out with Embraer, and Peru has had important initiatives such as the KT-1 line. There is also a rapid expansion of the drone and unmanned systems sector, where there are cooperation opportunities.
How do you see the future of the defense industry in the region? Which products or solutions will be most in demand? Which sectors offer the greatest opportunities for working on projects with Sweden?
The region’s challenges are similar to those of Europe: historically, each country often develops capabilities individually, when the ideal in the new situation would be to concentrate efforts at the regional level. Demand will grow in areas such as drones, sensors, naval modernization and surveillance. Beyond the defense sector, there are major opportunities in mining, telecommunications, cybersecurity and pharmaceuticals, where Swedish companies already have a presence. The relationship not only implies bringing Swedish technology to Peru, but also that the Peruvian industry can contribute value in Sweden.
How do you handle the high regional competition, especially compared to defense-sector suppliers from the U.S. and Asia?
Competition is normal, and in many cases we cooperate with those who are also our competitors. In defense, decisions are not only commercial but also political: a program such as the acquisition of a combat aircraft defines a strategic relationship of at least 30 years. That is why it is essential that there be trust between countries and a shared long-term development vision.
How are you responding to new global threats such as cybersecurity, drones, and conflicts?
Innovation is Saab’s DNA. Twenty percent of our profits are reinvested in research and development, which allows us to advance in critical technologies such as software, cybersecurity, unmanned systems and electronic defense. International cooperation is key: as a small country, Sweden has built a network of alliances that allows us to integrate global knowledge into every new solution.
What has been Saab’s role regarding the war with Ukraine? What products have you placed in the country?
The situation in Ukraine is a sensitive topic, and therefore it is important to be precise. Saab has not made many direct deliveries so far. However, we have indeed seen that several countries that previously had Saab products have decided to donate them to Ukraine as part of their support packages. In those cases, Saab has had an indirect role in accompanying the processes of replenishing or modernizing those countries’ capabilities. As for Ukraine specifically, what has arrived on the ground are mainly support systems and equipment that help strengthen the country’s defense, delivered by third parties.
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