Swedish Cabinet responding to Russians or Submarine Industry?

Five instead of two A26s? (Graphics courtesy of TKMS-Kockums website) 

Events in Crimea and Ukraine have increased concerns in Sweden about the possibility of an increased conventional military threat from Russia.

DefenseNews.com March 16, 2014 reports: http://www.defensenews.com/apps/pbcs.dll/article?AID=2014303160008:

Sweden’s government is examining a proposal to boost military spending to defend its own territories and the strategic Baltic Sea area in the face of renewed Russian aggression in Ukraine. There is also a movement among high government officials to re-examine the long-running issue of joining NATO. The Swedish Cabinet will discuss, in coming weeks, a cross-party coalition proposal to significantly increase capital spending on the Navy’s submarine fleet.

…The Swedish Cabinet will examine in coming weeks a proposal by Foreign Minister Carl Bildt to expand the Navy’s submarine modernization program to cover the acquisition of five rather than two next-generation subs at an additional cost of $1.6 billion.

“We need to strengthen our military presence on Götland and our overall capability in the Baltic Sea. Two new subs is not enough. The ambition should be to have the best fighter and submarine capability for our size of any European nation,” Bildt said in a statement. “This is vital if Sweden is to create a credible defense.”

The Riksdag in June 2010 approved plans to buy two new submarines. The first of these were to have been delivered in 2018. However, the project has been delayed by several years, with the prospect that Saab, and not the Malmö-based, German-owned ThyssenKrupp Marine Systems (formerly Kockums), will get the contract.

Also see Corporate Battle Between SAAB and TKMS Over Kockums of March 14, 2014 at http://gentleseas.blogspot.com.au/2014/03/corporate-battle-between-saab-and-tkms.html.

Might the Swedish Cabinet be planning to spend more on submarines due to the resurgent Russian threat or is it simply a pretext to revive Sweden's submarine industry?

Pete

Saab Being Subsidized To Buy Back Kockums?

A possible design for Kockums' A26. Will it ever be built? (Courtesy of Kockums' website ) 

Christopher Harress of International Business Times, March 3, 2014 reports http://www.ibtimes.com/saab-angling-take-control-thyssenkrupp-submarine-yard-sweden-1559035

:
"Saab Is Angling To Take Control Of ThyssenKrupp Submarine Yard In Sweden"

Three years ago, Kockums, the Swedish national submarine manufacturer was sold by the Swedish government to Germany’s ThyssenKrupp, but after uncertainty over jobs and boat building guarantees, it appears the Swedish government is angling for Saab to take control of the Malmo-based ship-building yard.

In a clear statement of intent, Sweden’s procurement agency FMV announced on Feb. 27 that it was allocating $3.84 million to test whether or not Saab had the ability to design and build the next generation of Swedish submarine.

The move was spawned by disappointment coming from the Swedish Defense Ministry that Thyssen wouldn’t give guarantees that ThyssenKrupp Marine Systems, what Thyssen renamed the old Kockums yard in Malmo, would continue to be a large-vessel producer in the region. Additionally, the ministry was concerned because Thyssen hadn’t provided fixed prices for the delivery of two new A26 generation subs and mid-life refits for the Gotland-class submarine.

That said, the failure for TKMS to get finalize those contracts has put jobs in jeopardy, says Thyssen. But Saab’s emergence as a possible buyer for the yard, according to the Swedish Defense Ministry, is because it’s believed that Thyssen is going to reorganize the 1000 unionized workers in Malmo and is to begin the manufacturing of small-sized subs and surface vessels up to 1000 tons. The New A26 class boats and those awaiting refit are around 1900 tons.

The Swedish government procurement agency has said that Thyssen’s reluctance to ioffer fixed prices for the new boats and upgrades means it is currently not possible to move forward to the build stage as it is not practical, sustainable or best use of taxpayer’s money.

Saab has contended that it could meet the needs to design, build and refit submarines, however, it has declined to comment suggestions that it might take control of the TKMS yard." 

ENDS 

COMMENT

Please connect with Singapore's December 2, 2013, decision to buy two HDW 218SG subs instead of the  purchasing Kockums' submarines  http://gentleseas.blogspot.com.au/2013/12/singapore-buying-two-hdw-218sg.html and  http://gentleseas.blogspot.com.au/2013/11/germans-sinking-kockums-swedish-sub.html 

This development begs questions. Why did the Swedish Government sell Kockums to its German competitors in the first place? Swedes may also want to know how much government money will be required to fund the buyback of Kockums? Also how much government money will Kockums need to build two new A26 generation submarines and for the mid-life refits for the Gotland-class submarines (two or all three)? 

Meanwhile US company DefenseNews reported on the same matter, but failed its geography test - by placing Helsinki in Sweden - see http://www.defensenews.com/article/20140302/DEFREG01/303020012/Saab-Maneuvers-Buy-Swedish-Submarine-Maker?odyssey=mod_sectionstories naughty!

Pete