Posted on 09/11/2014 1:16:21 PM PDT by sukhoi-30mki
Sweden has emerged from a bitter submarine technology row with Germany to mount a last-ditch effort to outbid Japan and Germany for the contract to build Australia’s new submarines.
The chief executive of Swedish defence giant Saab, Hakan Bushke, weighed into a heated Australian political row after Prime Minister Tony Abbott all but broke an election promise to assemble Australia’s new submarines in Adelaide.
Mr Abbott’s insistence the decision will be based on value for money and regional policy rather than jobs in Adelaide suggests 10 submarines will be built in Japan for about $20 billion, though the government has stressed no final decision has been made.
Mr Bushke insisted a German-Sweden government spat had been resolved and Sweden was “ready to offer Australian government and the Royal Australian Navy the full package’’.
The row had held Australia back from considering any submarine proposal from the Swedes.
“As of July 2, Saab completed a full takeover of Kockums [the designer of Australia’s existing Collins class submarines] which is now Saab Kockums and the Swedish Kingdom now controls the intellectual property for the Collins class submarines,’’ he said.
“If there is an open competition [for the Australian submarine] Saab Kockums will be in it.’’
Asked if Saab could match submarines being offered by German industrial giant ThyssenKrupp and Japanese industrial giants Kawasaki/Mitsubishi on price, Mr Bushke suggested it would not be a problem. “We are a small country of 9 million people with defence spending only 1.17 per cent of GNP so we are used to offering our customers affordable solutions . . . we can compete in the battle for affordability,’’ he said.
Saab Kockums was willing to design a 4000-tonne submarine specifically for the Australian project and take ASC and Royal Australian Navy engineers and technicians to work on a 3000-tonne A26 submarine it is designing and building for the Royal Swedish Navy.
The first of the five Swedish submarines is planned to be operating by 2023.
He said Saab Kockums supplied the propulsion systems for the Japanese Soryu class submarine fleet.
Kockums was overlooked by the Australian government in its initial market search because the company had been sold to ThyssenKrupp, which offered a 4000-tonne Type 216 from its German subsidiary HDW.
The Swedish government mounted a campaign to regain control of Kockums.
German, Japanese and Swedish builders are all now indicating $20 billion is a reasonable price tag for the project.
The opposition treasurer, Chris Bowen, said reports that ThyssenKrupp could build a submarine for a lower price than the Japanese and yet preserve jobs in Adelaide, meant an open and transparent competition should be held.
Have the Swedish Bikini girls give submarine rides for the Australians... They will make the sale.
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