Swedish company Saab plans to set up production in Ukraine to support the development of the country’s defense capabilities.

Saab CEO Micael Johansson announced this.

Johansson said he saw potential for working with Ukrainian companies on drone capabilities.

According to him, Ukraine could also be a supplier of munitions parts and contribute to the development of sensor technology.

“We have to help Ukraine build sovereign capacity and capabilities, so we need to have partnership with Ukrainian industry in Ukraine and also Ukrainian industry that has moved outside of Ukraine,” added Micael Johansson.

He explained that Saab was in talks with two or three companies on “how to establish local production,” but an agreement was yet to be finalized.

Johansson said the arms industry was pivoting from donation-based aid to direct partnerships with Kyiv.

According to Reuters, Saab is experiencing a boom in demand caused by global tensions, the war in Ukraine, and Sweden’s recent accession to NATO.

The Swedish company specializes in aircraft construction, aerospace equipment, and military electronics.

According to Saab, the company “serves the global market with products, services and solutions ranging from military defense to civilian security”.

With operations on every continent, Saab is constantly developing, adapting, and improving new technologies to meet the needs of countries in defense products.

As previously reported, Saab plans to build a new infantry weapons plant in Grayling, Michigan.