Saab AB and Simrad Optronics ASA establish JV

Nordic Business Report, Oct 29, 2008

NORDIC BUSINESS REPORT-29 October 2008-Saab AB and Simrad Optronics ASA establish JV(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Swedish defence and aerospace group Saab AB (OMX Stockholm:SAAB B) said on Tuesday (28 October) that it has signed a joint venture agreement with the Norwegian electro-optical instruments maker Simrad Optronics ASA (OSE:SIT).

The Norwegian-based new company, Vingtech Saab AS, will develop and market products within high-tech optronics. It will be 51%-owned by Simrad Optronics and 49%-owned by Saab.

Saab and Simrad Optronics initially planned to establish the joint company only if Norway decides to purchase the Gripen fighter aircraft, but decided to not to wait for the purchase decision.

"Since both Simrad Optronics and Saab anticipate stronger Nordic defence cooperation in the future, it was agreed not to wait for the aircraft purchase decision. The market potential for the projects that will be started at Vingtech Saab is estimated to reach a value above NOK1bn over the next five to ten years," Saab said.

Saab also said that it Norway decides to go with the Gripen, it could mean possible programmes worth up to NOK7bn during the first ten years.

Saab, headquartered in Stockholm, Sweden, is a global high-tech group providing products, services and solutions from military defence to civil security. The group has 13,700 employees worldwide and annual sales of SEK23bn.

One British pound (GBP) is worth approximately 10.71 Norwegian kroner (NOK). One British pound (GBP) is worth approximately 12.47 Swedish kronor (SEK).

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