Canada Could Gain 10,000 Jobs, Swedish Manufacturer Says

Canada Could Gain 10,000 Jobs, Swedish Manufacturer Says

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Written by Merri

November 14, 2025

The Swedish defence giant SAAB says Canada could see a major economic boost if it chooses to include the Gripen fighter jet in its future military lineup. Company leaders say the move could bring up to 10,000 manufacturing and research jobs to Canadian soil and strengthen long-term defence partnerships.

SAAB’s Job Proposal for Canada

Thousands of Positions Tied to Gripen Production

According to SAAB President and CEO Micael Johansson, Canada could become a major hub for Gripen production if Ottawa selects the aircraft. He confirmed in an interview at SAAB’s headquarters in Stockholm that he has already held discussions with the Canadian government about local manufacturing.

Johansson said major Canadian companies—including Bombardier and CAE in Montreal, as well as IMP Aerospace and Defence in Nova Scotia—could play central roles in the project.

Technology Transfer and Local Capability

Johansson emphasized that SAAB is ready to support Canada in building and maintaining its own Gripens.
He stated that Canada could manage final assembly, testing, upgrades, and component production with full support from SAAB.

“If Canada wants sovereign capabilities to build and upgrade its own aircraft, we can provide the technology transfer needed,” Johansson noted.

Plans for Canadian Gripen Facilities

New Factory or Converted Site

SAAB says it is open to forming a joint venture with Bombardier or expanding collaborations with existing partners.
The project may involve constructing a new Canadian facility or modifying an existing one. With government approval, the first Canada-built Gripen could be ready to fly in three to five years.

International Demand Could Strengthen Canada’s Role

Ukraine’s Interest in Gripen Jets

Johansson added that the production line would not only serve Canada. Ukraine has already signaled plans to purchase 100 Gripen jets, which could require significant production expansion.

“To support a major contract like Ukraine’s, we will need additional manufacturing hubs,” Johansson said. “Canada offers the right industrial environment and strategic alignment.”

Sweden’s Limited Workforce

Sweden’s population—just over 10 million—limits available engineering and production staff. Partnering with Canada, Johansson said, would be a mutual advantage, especially given both countries’ shared security interests, including concerns about Arctic sovereignty.

Canada’s Ongoing Fighter Jet Decision

Canada currently plans to purchase 16 F-35 fighters, with the option to increase the total up to 88 aircraft. The F-35 is manufactured by U.S. company Lockheed Martin.

However, earlier this year, Prime Minister Mark Carney ordered a review of the deal. The government is now weighing whether to stick with the F-35 exclusively or adopt a dual-fleet strategy that includes the Gripen.

Swedish Delegation Visiting Canada

Next week, a high-level Swedish delegation led by King Carl XVI Gustaf and Queen Silvia will visit Canada to strengthen bilateral ties. Stops are planned in Ottawa and Montreal, with defence cooperation as a key focus.

Johansson, who is part of the delegation, will also take part in a scheduled visit to Bombardier’s facilities. However, he said it’s unclear whether Canada is close to making a final decision.

“This partnership would benefit Sweden, Canada, and Europe, but the decision belongs to Canada. We are only providing the information they request,” Johansson stated.

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