Saab proposes sale of Gripen fighter jets to Colombia, eyes Peru deal

By Gabriel Araujo

WASHINGTON (Reuters) - Saab has made an offer to Colombia for the proposed purchase of an undisclosed number of Gripen fighter jets and is looking at a potential deal for the sale of the jets to Peru, the CEO of the Swedish defense firm told Reuters on Monday.

A Swedish public radio station reported last week, citing unnamed sources, that Colombia would buy a fleet of JAS Gripen jets made by Saab, which has a production line in neighboring Brazil.

"We have offered sort of a full-fledged offer to them. They are evaluating that and now we are waiting for the response," Micael Johansson said in an interview. "I think we have a good offer, but it's of course not ever without competition."

Brazil over the weekend agreed to expand its order of 36 JAS 39 Gripen fighters by 25%, in a deal that also included Sweden's selection of Brazilian planemaker Embraer's C-390 military cargo aircraft for its fleet.

The letter of intent was signed by Swedish Defense Minister Pal Jonson and his Brazilian counterpart Jose Mucio on Saturday, and a final contract is still pending.

Johansson said the move was "extremely good news" for Saab and noted that it should also allow for more Gripens to be assembled at Embraer's Gaviao Peixoto plant in the state of Sao Paulo, where a joint production line was opened last year.

The initial agreement included 15 aircraft to be produced in Brazil. Saab and Embraer plan to make the Gaviao Peixoto plant a production hub for the fighter in Latin America, as it could facilitate deals and exports of the aircraft.

Reuters reported in 2023 that Brazil was considering buying more Gripen fighters, and that Saab eyed potential purchases by Colombia and Peru as part of a push to boost sales in South America.

"It makes sense to work from this hub in Brazil if we have the opportunity to also convince Colombia and Peru about selecting the Gripen," said Johansson, adding that the Colombian sales campaign was further ahead in delivering proposals.

"But Peru is also a very interesting market since they have publicly said that they have created a budget to start this acquisition. So of course we are in that competition as well," he noted.

Saab shares closed up about 4% in Stockholm on Monday.

(Reporting by Gabriel Araujo; Editing by Paul Simao)

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