Gripen Offset Programme delivers 27.4 billion CZK to the Czech Republic

Defence and security company Saab has announced the publication of the Czech Gripen Offset Programme annual performance report for the year ending December 31 2012.

The report, which has been approved by the Czech Ministry of Defence, documents the annual fulfilment of the Programme of Industrial Cooperation accompanying the lease of 14 Gripen fighter aircraft to the Czech Republic by the Swedish Government. 

2012 highlights

  • Cumulative value of 27.4 billion CZK delivered as of December 2012
  • 107 per cent of total offset obligation (130 per cent of of the Gripen fighter lease contract value) delivered to the Czech Republic
  • Indirect offset obligation fulfilled
  • Defence and aerospace related direct offset obligation on target for delivery by the end of 2014
  • 2012 offset transactions valued at 1.83 billion CZK
  • 49 registered Gripen offset transactions as of December 2012

 

“We are happy to announce that the Gripen Offset Programme is preparing for finalization next year, as planned. Our cooperation with Czech industry, as well as with government institutions, has continously been good. The Czech Gripen Offset Programme certainly is among the most successful industrial cooperation programmes that Saab has executed,” said Jerry Sigfeldt, Vice President Saab Industrial Cooperation.

 “The Ministry of Defence of the Czech Republic has approved the 2012 Annual Report for the Gripen Offset Programme. As of December 31 2012 the total percentage of fulfilment amounts to 107 per cent of the obligation. The Programme runs to our satisfaction and in accordance with the terms of the Offset Agreement," said Brigadier General Ing. Pavel Bulant, Director of the Armaments Office at the Ministry of Defence of the Czech Republic.

Background

Czech Gripen Offset programme
Saab’s goal is to create Offset projects that contribute to the long-term economic strength of its partners, both in the defence and civil sector.

The Czech Gripen Offset Programme is contractually committed to generate  Industrial Co-operation to a value equal to 130 per cent of the Gripen fighter lease contract value, which represents 25.545 billion CZK. The Offset Agreement requires a minimum direct Offset equalling 20 per cent of the total Offset Agreement value (direct Offset refers to transactions in the defence, aerospace and security sectors). The Offset Programme runs from June 14 2004 to December 31 2014.

All aspects of the Offset Programme are governed by the Agreement on the Programme of Industrial Cooperation, a bilateral contract concluded between Gripen International and the Ministry of Defence of the Czech Republic (MoD). Czech offset legislation applies in the form of Ministry of Industry and Trade (MIT) Decree No. 19/2010. The Ministry of Defence has the final power to approve or reject offset transactions and offset values within the Programme. The MIT is the administrator and technical guarantor of the Offset Programme, together with the multi-ministerial Offset Commission. In accordance with the contractual conditions, the Offset Programme is subject to annual independent audits.

Gripen
Gripen is the first new generation multi-role fighter aircraft to enter operational service. Using the latest technology it is capable of performing an extensive range of air-to-air, air-to-surface and reconnaissance operational missions. Gripen is flown by the air forces in five nations  Sweden, Czech Republic, Hungary, South Africa and Thailand. The UK Test Pilots’ School (ETPS) operates Gripen as its advanced fast jet platform for test pilots worldwide. Sweden has made the decision to procure 60 Gripen E figthers, the next generation aircraft. Sweden has also signed an agreement with Switzerland, where the government has the goal of procuring 22 aircraft.{Link list} 

For further information, please contact:

Saab Press Centre
+46 734 180 018
presscentre@saabgroup.com

Josef Bouska / Joe Cook, Cook Communications, +420 233 342 824-6
j.bouska@cook-comm.com / j.cook@cook-comm.com

www.saabgroup.com

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