The Swedish Security and Defence Industry developed to its present size and competence during the cold war. Sweden’s neutrality policy, as formulated after the second World War, required strong armed forces, which in turn required a strong national defence industry. The ambition was maximum independence from foreign suppliers. The industry became an important part of the Swedish security policy.
The Gripen fourth-generation multi-role fighter together with Erieye, Airborne Early Warning & Control System / Photo by Saab
The collapse of the Sovjet Union and the dissolution of the Warsaw Pact were starting signals for a total reorganisation of the Armed Forces, which led in turn to extensive restructuring of the industry.
The undoubtedly largest change was the merger between Saab and Celsius where aircraft, missile and avionics manufacture were concentrated at Saab, while artillery activities, including intelligent ammunition was transferred to BAE Systems Bofors. Saab has become the predominant defence industry company with the focus on everything from military defence to civil security. The acquisition of Ericsson Microwave Systems in 2006 and its unique radar and sensor activities have reinforced the image of Saab as a complete supplier of defence and security systems.
On the naval side, both surface ship and submarine development has been concentrated at Kockums.
Ammunition manufacture, including propellants and explosives, is now located at the Norwegian-owned Nammo Sweden and the French-owned company EURENCO Bofors, respectively.
On the vehicle side, BAE Systems Hägglunds has acquired a leading position in the field of military vehicle systems, not least by sale of Combat Vehicle 90 to Sweden, Denmark, Finland, Norway, Switzerland and the Netherlands.
The large companies also include Volvo Aero with its expertise both in the sphere of military and commercial aircraft engines, Peltor a world leader in hearing protection, Logica a leading European IT and business service company, PartnerTech a supplier of mechanics and electronics sub-systems, and EuroMaint a leading maintenance partner.
The picture of an advanced Swedish Security and Defence Industry must be completed by a large number of small and medium-sized enterprises (SME), which are both important sub-contractors and which also develop and market their own civil and military products.
Visby-class Corvette, built on the new stealth technology / Photo by Kockums
Globalisation can be clearly noted in the industry’s activities. At the same time as there is substantial foreign ownership in Sweden, Swedish companies are making large investments abroad. As examples can be mentioned Saab’s companies in Australia, USA, South Africa and Finland as well as Volvo’s in USA and Norway, PartnerTech's in Poland, UK, USA, Finland and Norway, and CS Technology’s in Poland.
The defence industry plays an important role in the procurement of Swedish military equipment. However, not everything can be produced in Sweden. According to a decision in the Parliament, Sweden shall endeavour to participate in international co-operation programmes in order to be able to share costs and ensure interoperability.
Combat Vehicle 9035 / Photo by BAE Systems Hägglunds
Export successes, as well as research and development technology developed for the needs of the Swedish Armed Forces contribute to the domestic defence industry being perceived as an attractive partner in international co-operations. It also reinforces the industry’s position in a cross-boarder network of defence industries, which serves as the basis for establishing long-term relations and increasing reliability of delivery.
Societal Security
The view of security has changed dramatically in the past ten years.
Today, a confrontation between nations is not only what frightens people, but also rather new and more unforeseeable conflicts such as regional ethnic confrontations, natural disasters, organized crime, epidemics, climate and different types of terrorist actions.
Interpreting a changed and unclear threat situation as a sign that there are no military threats is a risky basis for long-term decisions. The security policy situation may rapidly degrade and the need for military and industrial resources could then quickly increase.
But security not only concerns the domestic situation, but is highly dependent on what is happening in the outside world. The Swedish Armed Forces’ extended international mission should be seen in light of this.
The society has become increasingly technologically advanced and thereby vulnerable. Defending the borders no longer is the only priority. Society is reliant on a number of flows: flows of goods, water, power, information and a great deal more, nationally and internationally. It is important to utilize all of society’s resources, civilian and military, to create the highest level of security.
Furthermore, the sector is becoming more difficult to define as the boundaries between defence, security and civil technologies (e.g. electronics, telecommunications) are becoming less fixed. Peacekeeping/making missions and the impact of terrorism, have led to a blurring of lines between internal and external security and to a need for better policy co-ordination between both.
The Swedish Security and Defence Industry has long had a close and fruitful association with commercial technology.
Among the Leaders in the World
The Swedish industry’s unique capability to develop and manufacture, on its own, combat aircraft, submarines, combat vehicles, communications systems, radar systems, command and control systems and ammunition, just to mention some major areas, constitutes a solid platform for international co-operation, making Sweden an attractive partner. Strong efforts are therefore made to maintain a solid defence technology and industrial base in a number of areas where Sweden is among the leaders in the world.
Lars OLSSON
Director of Communications and PR
Swedish Security and Defencs Industry Association
