Saab Builds Latin American Defense Dominance with Local Factories and Regional Alliances

Swedish defense firm Saab AB has expanded its Latin American footprint through localized production of advanced systems like Gripen fighters, securing over $6.6 billion in contracts with Brazil and Colombia since 2022.

The Wallenberg family-controlled company is also competing for Peru’s $3.5 billion fighter program, positioning itself as a rival to U.S. and French suppliers in a region prioritizing sovereign defense capabilities

Brazil serves as Saab’s operational hub, with 15 of 36 Gripen E/F fighters being assembled at Embraer’s São Paulo facility by 2025. This $5.4 billion program includes training over 350 Brazilian engineers in Sweden and establishing a dedicated production line in Gavião Peixoto.

The initiative has created 1,000 local jobs and enables Brazil to export Gripen fighters regionally. Brazil’s Air Force already operates early-delivery Gripens, supported by interconnected simulators at Anápolis Air Base for coordinated training.

Colombia selected Saab’s Gripen E/F in April 2025 to replace its aging Kfir fleet, with negotiations ongoing for 16–24 jets. Concurrently, Saab will equip Colombia’s new SIGMA 10514 frigates—built locally by COTECMAR—with its 9LV combat systems, Ceros 200 fire control directors, and Sea Giraffe 4A radars.

The first frigate, part of a $1.2 billion naval modernization program, will deploy by 2030. Peru’s Air Force is evaluating Saab’s offer for 12 Gripen E/F fighters alongside competing bids from Lockheed Martin and Dassault.

Saab’s Latin American Strategy

Sweden’s government has sought parliamentary approval for the sale, emphasizing the jet’s ability to operate from short, rugged runways—a critical feature for Peru’s diverse terrain.

Saab’s proposal includes technology-sharing agreements mirroring its Brazilian model. Saab’s success stems from tailoring solutions to regional needs. In Brazil, 90% of Gripen production staff are locals, and the Gripen Design and Development Network supports future upgrades.

Colombia’s naval contract marks Saab’s first collaboration with Damen, expanding its footprint beyond air defense. The company also supplies Argentina’s military with RBS 70 NG air defense systems and surveillance aircraft.

Challenges persist as competitors undercut Saab’s pricing. Peru’s budget constraints—$3.5 billion for 24 jets—test Saab’s cost-efficient pitch. Yet its focus on sovereign capability development aligns with Latin American priorities, ensuring sustained relevance in a region prioritizing defense autonomy over imported systems.

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