Sweden’s Saab AB said on Sept. 18 that if the Boeing [BA] team wins the U.S. Air Force’s multi-billion dollar contract to develop and build the T-X trainer aircraft, it will open a manufacturing and assembly facility in the U.S.
Hakan Buskhe, president and CEO of Saab, said the company is looking at three options if it and teammate Boeing win T-X, which is slated for a decision in 2017. One option is establishing a new production facility, he said at the Air Force Association’s annual national conference.
A second option is to partner with an existing supplier in the U.S. “to jointly develop a dedicated manufacturing capability,” Buskhe said. The third possibility is to acquire an existing manufacturing facility, he said.
Saab hasn’t decided where in the U.S. it would establish a production capability, Buskhe said, but added that a final decision will be based on what is best for the program.
Buskhe said Saab is “committed to growing our business in the U.S., adding that establishing a facility for manufacturing and assembly aircraft demonstrates “another step forward” in building its presence and organic capabilities here to develop and build its products.
Boeing said in May that if it wins the competition to be prime contractor on T-X, it will assemble the trainer aircraft in St. Louis, which is where its defense business is headquartered. Leanne Caret, CEO of Boeing’s defense segment, said a Boeing win combined with Saab opening a manufacturing facility would mean more than 90 percent of the team’s T-X production would be performed in the U.S.
The companies have not disclosed their planned workshares on T-X if they win. They have said that Saab will be responsible for the aft structure section. Boeing, the week of Sept. 10, said that if it wins T-X, Triumph Group [TGI] will be a major supplier on the program. Triumph develops and manufactures aerostructures and aerospace systems for military and commercial aircraft.
General Electric [GE] is supplying its F404 engine for Boeing’s T-X team.
Saab has been doing business in North America for more than 50 years. The company is a supplier to Boeing on the 787 Dreamliner passenger plane. Buskhe said in a statement that U.S. “is a strategic market” for the company.
Buskhe rejected any notion that the team’s decision to produce Saab’s portion of T-X in the U.S. has anything to do with U.S. President Donald Trump, who has cajoled U.S. manufacturers since before being elected fall 2016 to quit sending production jobs outside of the country. Buskhe said Saab has a long-term strategy to grow in the U.S.
He noted during his prepared remarks though that opening a production facility will bring high-technology jobs to the U.S. He also said building aircraft parts in the U.S. would also close the currency gap versus if the parts and systems were built in Sweden.
Boeing and Saab say their T-X offering is purpose built for the U.S. Air Force. The team has built two production ready T-X test aircraft. Caret said that the flight-testing that began earlier in 2017 continues and has “proven out the capabilities as per the requirements” for the program and is “exceeding our expectations.”
If Boeing doesn’t win T-X, Caret said the company still believes there are global opportunities for this type of aircraft and so “we’ll continue to pursue that.” She said U.S.-based production would depend on the customer. Buskhe said he “has a strong belief” in one supply chain and that Saab having a production capability in the U.S. could support requirements elsewhere.
The $16 billion contract is to develop and build the first 350 trainers. Lockheed Martin [LMT] is teamed with Korea Aerospace Industries on another T-X offering and Italy’s Leonardo and Stavatti Aerospace are also pursuing the program.