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Gripen Offset Program Delivers 25.6 Billion CZK to the Czech Republic

Gripen Offset Program Delivers 25.6 Billion CZK to the Czech Republic

Defence and security company Saab has announced the publication of the Gripen Czech Offset Program annual performance report for the year ending December 31, 2011.

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

2011 highlights:

• Cumulative value of 25.6 billion CZK delivered as of December 2011
• 100 % of value of total offset obligation to the Czech Republic delivered ahead of schedule
• Indirect offset obligation fullfilled
• Defence and aerospace related direct offset obligation on target for delivery by 2014
• 2011 offset transactions valued at 1.87 billion CZK
• New direct offset implemented in 2011 – Saab’s acquisistion of assets of E - COM
• 49 registered Gripen offset transactions as of December 2011

“We are very pleased to announce ahead of schedule delivery of our total offset value under the Gripen Offset Program. A particular highlight of the Gripen Offset Program in 2011 was Saab’s acquisition of the assets of E - COM, Slavkov-based maker of virtual training simulators. Saab is very pleased to expand its business in the Czech Republic to simulator production as well,” says Bengt Littke, Gripen Program Director – Czech Republic.

“The Gripen Offset Program is one of the most important and successful programs under the auspices of the Ministry of Defence. The results of the program were presented to the Parliamentary Sub-committee for the oversight of acquisitions by the Ministry of Defence on 3rd April 2012, and they were very positively received by the Members of Parliament and the representatives of the Ministry of Industry and Trade,” says Colonel Engineer. Pavel Bulant – Armaments Division Director at the Ministry of Defence of the Czech Republic.


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.

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

All aspects of the Offset Program are governed by the Agreement on the Program 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 MoD has the final power to approve or reject offset transactions and offset values within the Program. The MIT is the administrator and technical guarantor of the Offset Program, together with the multi-ministerial Offset Commission. In accordence with the contractual conditions, the Offset Program is subject to annual independent audits.


Gripen is a new generation fighter aircraft that employs the latest technology and the latest weapons to deliver the capability for an extensive variety of air-to-air, air-to-surface and reconnaissance operational missions. Gripen is in service with the Swedish, Czech, Hungarian, South African and Thai air forces. The UK Test Pilots’ School (ETPS) operates Gripen as its advanced fast jet platform for test pilots worldwide. Gripen is also type-selected by the Swiss government as their future multirole fighter aircraft. Gripen is fully NATO compatible and can be deployed globally. Gripen meets the highest demands of operational deployment.

Gripen International also has successful Offset Programs (Industrial Co-operation) in South Africa and in Hungary.

Source: Minsk, 13 June 2012 - SAAB AB News

Photo: The Czech Republic Air Force JAS-39C/D Gripen Fighter Jets (Photo by


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