Saab’s ‘huge ramp up’ in anti-tank weapon, ammo production targets 400,000 units a year

Correction, 2/12/23 at 3:40 pm ET: The original version of this story stated that NLAW production would ramp up to 400,000 a year. That number was related to all of Saab’s ground combat portfolio, not just NLAW. This story has been updated throughout to reflect that. 

BELFAST — Swedish manufacturer Saab expects the weapons of its ground combat portfolio — including the company’s Next generation Light Anti-tank Weapon (NLAW) which have proven highly effective in Ukraine — will increase dramatically to reach an annual output of 400,000 units.

“In the context of how we have doubled capacity from one year to the next at our Swedish [production] sites…and by 2025 we will have doubled capacity again, then it will be possible to generate 400,000 units from our sites per year,” said Saab CEO Micael Johansson during a Feb. 10 financial results media briefing. “It is a huge ramp up.”

Included in that 400,000 number are the company’s Carl Gustaf, AT4 and NLAW systems, all of which are man-portable weapons used against ground vehicles, as well as ammunition.

Used by Ukrainian soldiers to devastating effect against Russian forces, NLAW is a shoulder-launched munition continues to be in high demand as European nations look to replace stockpiles after gifting thousands of units to Kyiv. Designed to target main battle tanks, the 28 pound munition can be used at a range up to 875 yards and features a “predicted” line-of-sight targeting capability that enables an operator to track a target within a matter of seconds and quickly engage it.

The Swedish-UK program involves Saab supplying specialist kits for the weapon, with final assembly based at Thales’ Belfast, Northern Ireland, production facility.

“We can handle the requests that we see coming, including the orders that we received last year from the UK and Sweden,” added Johansson. “We have invested now in building up capacity to the extent that it will be sufficient for quite some time.”

The UK MoD issued Saab with a new $280 million NLAW contract in December 2022 to restock British Army stockpiles, with production set to take place between 2024 to 2026. Delivery of 500 units to London under a separate acquisition is due to occur this year.

“Due to its agility, reliability and accuracy the NLAW has played an important role in Ukraine’s defense capacities, making up part of the 10,000 anti-tank weapons the United Kingdom has supplied to the Ukrainian armed forces,” Thales said at the time.

UK Secretary of Defence Ben Wallace has previously questioned NLAW manufacturers for having to be “pushed hard” in investing in their production lines, telling a British Defence Committee hearing that “not surprisingly the supply chain has not been there,” in reference to slower weapon sales before the war in Ukraine.

Saab and Sweden’s Defence Material Administration also signed off on a SEK 900 million ($86 million) NLAW deal in December 2022, with deliveries set to finish in 2026.

Saab reported its overall order intake for 2022 amounted to SEK 63.1 billion ($6 billion USD), an increase of 45 percent from 2021. Nearly half of the annual 2022 order total was recorded in the forth quarter, with an exceptional SEK 29.9 billion logged – an increase of 144 percent over the previous year.

“I would say that maybe in the last quarter we started seeing some effects specifically from the tragic war in Ukraine,” said Johansson. “Most of the contracts were down to discussions we had initiated with customers a long time ago.”

Other than securing the Swedish and UK NLAW contracts, Saab also benefited from a Gripen C/D fighter jet upgrade deal from Sweden in Q4 2022. The quarter also included Stockholm committing to fund a life extension mine countermeasures ship agreement, while Poland signed on for two signals intelligence ships and Finland ordered missiles for the RBS 70 ground-based air defense system.

Development of the US Air Force’s T-7A Red Hawk advanced trainer has fared less well however, on account of ejection seat issues delaying production, with Johansson admitting that “profitability” for 2022 had been negatively impacted.

“We have to mitigate this negative effect as far as we can and that [difficulties] will sort of fade away over time,” he added.

A new GlobalEye Airborne Early Warning and Control (AEW&C) flight test campaign for UAE aircraft will also begin “soon,” and in line with a second order for two aircraft from Abu Dhabi originally placed in January 2021. Deliveries for the new aircraft are expected to start in 2024, according to Johansson.

On naval business, he added that “there are a few things boiling, campaign-wise, on the submarine side,” which mainly includes competing in the Dutch Walrus-class replacement effort. Saab Kockums, Naval Group and ThyssenKrupp Marine Systems are due to submit their proposals in “summer 2023” following release of a request for quotation by the Netherlands Ministry of Defence last year.