Offsets increasingly decisive in defence contracts, says Saab executive

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.