Saab And Malaysia Close In On Billion Deal

Malaysia
has selected Saab Erieye radar and the purchase is included in the country’s
plans for defence equipment purchases. Its confirmed by Saab Vice President
Erik Löwenadler, writes the Swedish business newspaper Dagens Industri.
    The next
step is the contract negotiations. The deal includes four airborne radar
systems and is worth around 7 billion dollars.
    “We
are waiting to enter the negotiations with the customer for the delivery, but
it must be a definition of what their needs are and how we will match it,”
said Erik Löwenadler.
    The need for an early warning system is great, writes Dagens Industri.
    Malaysia
has assessed the Erieye on two different planes, one of which is Saab 2000.
    No other radar is involved in contract negotiations. The project has the status
of a priority and is included in the Malaysian defence equipment plans, but in
competition with fighter planes and other supplies. Therefore, the decision
dragged on.
    “Erieye is included in the rolling five-year plan they have for defence
equipment purchases. We’ve been around all the time as a more or less a
priority item, but it takes time to complete a deal,” said Erik
Löwenadler.
    He was already a couple of years ago convinced that the contract in Malaysia
was as good as done, but says that he understands if the customer needs time
when it comes to such big business and finance.
    “These deals will take a very long time. In Pakistan, we started ten or twelve
years ago. In Malaysia,
we have worked since 1992. It is a weighty political element in these deals.”

    Could the deal be finalized with Malaysia this year?
    “I am doubtful. Although the process has gone on so long it does take a
long time to complete a deal,” said Erik Löwenadler. But he continues:
    “That does not mean that I don’t think it could be this year.”
    How much the contract is worth in money for Saab depends on whether Malaysia also chooses Saab 2000 as a carrier of
the radar, but it is roughly the same size as Pakistan‘s Erieye deal.
    “It might be slightly less, it may be that magnitude, can also be
something more,” said Erik Löwenadler. The Pakistan Erieye del covered four
to five radar systems for the 7 billion Swedish kronor, after renegotiation.
    Malaysia
is not alone. As DI is informed Saudi
Arabia
has also revealed an award of early
warning systems, in which the Erieye selected. Even in that case, Saab is
awaiting a decision on contracts. In addition, there are additional countries
which are close to the finish.
    “We have a number of stakeholders that we’re talking to that are well
advanced,” said Erik Löwenadler.
    And despite the lengthy procurement process, he dares to stand out the chin:
    “I think we can have a contract with one customer in the near two-year
period, up to and including 2009.”
    “We also hope for a continuation in Thailand, to complement with a
similar platform from the Swedish defence. In the long term, we believe that
there is room for new sales,” said Erik Löwenadler.




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