Saab raises GlobalEye production target as demand accelerates

Saab is raising its long-term production ambitions for the GlobalEye airborne early warning and control aircraft following a series of international successes.

Speaking during the company's second-quarter earnings call, President and CEO Micael Johansson said the company has already increased its production target.

- If you have asked me one or two quarters ago I would probably have said that we need to ramp up to four a year. Now I think we have to actually take it a bit further to six per year, Johansson said.

The comments come after NATO announced plans to begin formal negotiations with Saab over up to ten GlobalEye aircraft, while Canada earlier this year selected the platform as its preferred airborne early warning solution. Neither programme has yet resulted in a signed contract.

Saab currently produces around two GlobalEye aircraft annually, but Johansson said the company is now aiming for six aircraft a year by the end of the decade.

- I would rather say that we go from two a year now and should aim for like six a year in the 2030 timeframe, he said.

Johansson said Saab is preparing for demand beyond the NATO and Canadian programmes.

- Our assessment of the potential pipeline, including NATO and Canada of course, and a couple of others that we have in the pipeline, is substantial.

To support the higher production rate, Saab plans to establish a GlobalEye hub in Canada and is also considering another location in Europe and "there may be more in pipeline", as Johansson said.

He added that the company wants to build sufficient capacity in advance to maintain delivery times rather than waiting for additional orders before expanding production.