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Saab has promised a Canadian assembly line for the Gripen jets if Ottawa places an order.JONATHAN NACKSTRAND/AFP/Getty Images
Saab has chosen IMP Aerospace & Defence to run a Canadian final-assembly line in Halifax if the federal government chooses its Gripen E fighter jet.
Saab said in a news release on Tuesday that it has signed a teaming agreement with IMP covering the final assembly of the aircraft, as well as in-service support and training for any Canadian-made Gripens.
The Swedish aerospace and defence manufacturer also announced a memorandum of understanding with Magellan Aerospace of Mississauga to manufacture airframe and composite structures, and a training agreement with Montreal’s CAE Inc, after an earlier MOU.
“Canada’s fighter capability is a long-term national investment,” Micael Johansson, president and CEO of Saab, said in the statement.
Saab describes the three companies as its “principal partners” and describes the agreement as the first step toward a national industrial program.
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David Gossen, president of IMP, said in a statement that the Gripen contract positions “Canadian industry as an enduring part of the global Gripen program.”
The agreements are conditional on Ottawa purchasing the Gripens instead of its current order for U.S.-made F-35 stealth jets.
Prime Minister Mark Carney paused plans to proceed with a planned order for 88 F-35s, made by Lockheed Martin, as the federal government considers whether to purchase all of those jets or instead have a mixed fleet that includes Gripen jets.
Mr. Carney launched a review of the purchase after U.S. President Donald Trump made trade and annexation threats. The review was supposed to have concluded a year ago.
The Royal Canadian Air Force announced last Friday that it has received its first pair of F-35 jets.
The IMP announcement coincides with the Canadian Aerospace Summit in Ottawa, where Mr. Johansson is scheduled to speak Tuesday afternoon. Defence Minister David McGuinty is also expected to speak at the summit.
The Globe reported in September that Saab had pitched a start-to-finish Canadian production line if Ottawa places an order. The production line would include roughly 10 prime partners, 250 suppliers and an invitation to join Sweden’s next combat aircraft program.
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Tuesday’s news release contains no new details on estimated job numbers or the potential cost.
It also contains no details on the principal concern regarding the Gripen, its engine. The F414-GE-39E, made by General Electric, is the aircraft’s one purely American component and is subject to U.S. export control, allowing Washington to approve, restrict or refuse the sale of the American military technology. In August, Mr. Johansson told The Globe that “every contract that we secure is backed by a licence from the U.S.” and that it had “never been a problem.”
GE Aerospace and Magellan signed an MOU this July under which Magellan would be responsible for engine overhaul and maintenance in Mississauga.
Industry Minister Mélanie Joly said at The Globe and Mail’s defence summit on Oct. 14 that the decision on major defence procurements could come “within a couple weeks.”
Canada has 16 F-35s under contract and has paid long-lead costs on 14 more; the remaining 72 of the 88-jet order are under review.
Canada’s first two CF-35A Lightning II fighters were handed over to the RCAF at Luke Air Force Base in Phoenix on Oct. 22. There are around 30 Canadian firms that are already suppliers to the global F-35 assembly operations.