Defense and security company SAAB and Canada’s ABB said they are partnering with BAE Systems in a competitive bid for the Department of National Defense (DND) $1.9 billion Close Combat Vehicle (CCV) program.
The Canadian Army requires high survival, medium weight vehicles for future missions. This vehicle would fall between the Light Armored Vehicles and the Leopard 2 main battle tanks.
The bid includes a total of 108 vehicles along with an option for the purchase of an additional 30 vehicles, the company said Oct. 28.
A significant portion of the vehicle will be manufactured in Canada through the government’s Industrial Regional Benefits (IRB) program. IRB policy requires business activity in the Canadian economy equal to 100 per cent of the contract value.
Saab has named ABB Analytical to source, supply and produce an electro-optic control system.
This program will have important impact on the local economy, creating about 50 jobs for ABB and sub-contractors located in the provinces of Quebec and Ontario as well as extend economic value across Canada.
“The Saab model ensures job maintenance for engineering and technical staff as well as the creation of new jobs,” said Marc-Andre Soucy, director of the Remote Sensing Industry at ABB Analytical Measurements. “Producing in Canada will provide stability to the site and will allow ABB Analytical Measurements to increase its contribution to the local aerospace sector in the province of Quebec, Canada.”
In Canada, Saab has been executing IRB obligations for about 25 years. To make it easier to execute the IRBs and provide service and support, it has established three companies across the country, and has recently acquired Klein Systems Group Ltd in British Columbia.
“With the CCV program Saab is continuing to grow and invest in Canada, and in order to be ready for the start of the program, Saab has already transferred its technology to ABB creating opportunities, for the Canadian industry into major worldwide procurement programs, ” said Patrick Palmer, executive vice president of Sales and Marketing Saab Technologies Canada, Inc.
For ABB and its Canadian partners, this project represents an important springboard for future expansion of existing capacity as well as collateral benefits for other markets. As a key industrial partner to SAAB, ABB sees long-term benefits arising from expanded capabilities and introduction to new business areas has a direct impact on its local community.
“The ($1.9 billion) IRB program requires 100 per cent Canadian content, and some 50 Canadian Companies from coast to coast are expected to be part of the BAE Systems team and technology transfer during acquisition and the In-service Support phase delivers a significant number of high quality jobs for Canada.” said Mikael Segerman, sales director Canada, BAE Systems Hagglunds.