Daily Newsletter

29 November 2023

Daily Newsletter

29 November 2023

Saab signs South Korea support contract for Arthur systems

The Arthur system, a weapon-locating radar, plays a role in detecting and warning against incoming fire.

Harry McNeil November 29 2023

Swedish defence company Saab recently finalised an agreement with South Korea’s Defense Acquisition Programme Administration (DAPA), solidifying a commitment to support and supply spare parts for the Arthur weapon locating systems. The contract, valued at approximately Skr795m ($71m), spans 2023 to 2028.

Saab’s role in this collaboration extends beyond traditional supplier-customer dynamics. The company will execute the contract through its local support team based in South Korea, emphasising a hands-on approach to ensure optimal performance and availability of the Arthur systems.

In addition, a team in Gothenburg, Sweden, will manage spare parts supply and provide essential back-office support.

Carl-Johan Bergholm, head of Saab’s business area surveillance, expressed pride in contributing to the operational efficiency of the Republic of Korea Armed Forces. “The Republic of Korea Armed Forces is the largest operator of our Arthur weapon locating system, and we are proud to contribute to its capability by ensuring the systems remain in operation with excellent availability.”

Other Arthur locating systems international developments include Saab previously supporting the Hellenic Army’s Arthur weapon locating systems. In a separate development from 2009, Saab secured a $65.5m contract from the Italian Army for the Arthur weapon locating system. Additionally, Saab extended its support contract with the UK Ministry of Defence for the Arthur system.

The Arthur system, a weapon-locating radar, plays a role in detecting and warning against incoming fire. This contract will enhance the system’s operational readiness to bolster South Korea’s defence capabilities.

Saab announced robust financial results for Q3 2023. In Q3, Saab saw significant growth in order intake, with a notable increase in demand for its defence portfolio. The company reported sales growth, achieving revenues of Skr11.53bn with an organic growth rate of 31%. Profitability also improved, with EBITDA increasing by 28% to Skr1.42bn.

Internet of Things (IoT) in Defense

The applications of IoT in defense are wide-ranging and include health monitoring, AR remote training, gaining situational awareness using drones, vehicle management, target recognition, and many more. For instance, smart sensors can be used on military equipment to give data on their health and whether maintenance is needed. This helps reduce operating costs and downtime for military equipment as the sensor can predict when a breakdown is imminent. However, the proliferation of IoT has also brought up security concerns.

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