Non-Subscriber Extract
Offsets increasingly decisive in defence contracts, says Saab executive
By Keri Wagstaff-Smith
13 October 2009
Increased use of legislation and the growing complexity of customer demands are two emerging trends in the offsets arena, says the head of industrial co-operation at Swedish defence aerospace group Saab.
Meanwhile, offsets themselves are playing an increasingly prominent role in defence contracts across the globe, he has contended.
Speaking to Jane's on 6 October, Andreas von der Heide, Senior Vice-President and General Manager of Industrial Co-operation at Saab, said: "The first big thing is that there are more and more countries implementing legislation rather than providing vague recommendations for offsets. To some extent this makes life a bit easier. It's inflexible, but it's clear - the rules are transparent ... there's a more structured framework.
"Secondly, demands and expectations are becoming more complex. Beforehand, it was more about outsourcing components. Now, it's more about complex strategic partnerships.
"Thirdly, offsets are increasingly becoming a winning factor [in contract bidding]," he said.
The group is currently pitted against France's Dassault and US group Boeing in a bid to win the Brazilian competition for a new multirole combat aircraft.
The F-X2 competition - which could lead to an eventual requirement for up to 100 aircraft - has attracted bids with a heavy emphasis on technology transfer and industrial participation.