Saab’s Major Partnership with South Korea Threatens European Naval Projects with British and French Frigate Developments

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October 5, 2025

Race to Equip Swedish Navy: New Warship deal Attracts International bidders

Stockholm – A significant shift is underway in Sweden’s plans to modernize its naval capabilities, with the procurement of four new surface combat vessels attracting interest from international defense contractors. Initial plans focused on a domestically developed design, but the Swedish Armed Forces and defense Material Administration (FMV) are now considering established, “off-the-shelf” designs, marking a pivotal change in strategy.

From Domestic Design to Global Competition

Since 2020, Sweden has been planning to augment its fleet, currently led by the five Visby-class corvettes, with more advanced surface combat vessels. In 2021, Saab secured a contract to develop the “Visby Generation 2,” initially envisioned as smaller vessels similar in design to the existing Visby corvettes. However, recent assessments indicate a move towards larger, more capable warships.

According to Johan Granholm, a defense expert at the Swedish Defence College, the evolving requirements have opened the door for foreign competitors. The FMV is now evaluating existing designs,with a target delivery date of 2030.

Key Contenders emerge

British defense company Babcock is reportedly nearing a deal to supply its Type 31 frigate. Simultaneously, French naval firm Naval Group has entered the competition with its FDI frigate, engaging in discussions with the FMV since early 2025. Email correspondence reveals ongoing talks between both companies and Swedish authorities.

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The first Type 31 Frigate, HMS Venture, under construction at Babcock’s shipyard in Scotland.

Saab, initially slated to lead the project, remains in the running, having partnered with Babcock for two years on a preliminary design. This collaboration adds a complex dynamic as the same Babcock now competes directly with Saab.

Financial Implications and Strategic Considerations

The prospective defense investment is substantial. Greece recently purchased an FDI Frigate for approximately 800 million euros (roughly 9 billion Swedish krona). A final decision is expected in the first half of 2026.The swedish Navy has already named the new vessels – HMS Luleå, HMS Norrköping, HMS Trelleborg, and HMS Halmstad – with the class named after HMS Luleå.

The shift towards larger vessels reflects a broader change in strategic thinking. Granholm emphasized the importance of endurance and the ability to project power across the Baltic Sea and the North Atlantic, vital for protecting Sweden’s trade interests.He noted that approximately 90 percent of Sweden’s trade relies on maritime routes.

Ship Type	Length (approx.)	Manufacturer
Visby Corvette	70 meters	Saab Kockums
FDI Frigate	122 meters	Naval Group
Type 31 Frigate	139 meters	Babcock
Saab Proposed Vessel	100 meters	Saab/Babcock

Did You Know? Sweden’s naval strategy has evolved significantly over time, from prioritizing smaller, coastal defense vessels in the 1960s to now seeking larger, more capable warships for broader regional protection.

Evergreen Insights: The Evolution of Naval warfare

The Swedish Navy’s modernization reflects a global trend towards more versatile and technologically advanced warships. Modern naval vessels are increasingly tasked with a wide range of missions, including anti-submarine warfare, air defense, and maritime security.The selection of the right vessel class is a critical decision, balancing cost, capability, and strategic requirements. The integration of advanced sensors, weapons systems, and data analytics is also reshaping naval warfare, demanding significant investments in training and infrastructure. The current geopolitical climate, marked by increased tensions in the Baltic Sea region, underscores the urgency of these upgrades for Sweden and othre nations in the area.

What factors do you believe will ultimately determine Sweden’s choice of warship? and how will this decision impact regional naval dynamics in the Baltic Sea?

Frequently Asked Questions About the Swedish Navy Upgrade

What are surface combat vessels?

Surface combat vessels are warships designed to operate on the surface of the water and engage in a variety of combat roles, including anti-air, anti-submarine, and anti-surface warfare.

Why is Sweden upgrading its navy?

Sweden is upgrading its navy to address evolving security challenges in the Baltic Sea region and to protect its maritime interests.

Who are the main contenders for the warship contract?

The main contenders are British firm Babcock, with its Type 31 frigate, and French firm Naval Group, with its FDI Frigate. Saab is also still in the running.

What is the estimated cost of the new warships?

The cost is estimated to be substantial, with similar frigates costing around 800 million euros each.

When is a final decision expected?

A final decision is expected in the first half of 2026.

What is the significance of the ship names?

The vessels are named after Swedish coastal cities: HMS Luleå, HMS Norrköping, HMS Trelleborg, and HMS Halmstad.

Share your thoughts on Sweden’s naval modernization plans in the comments below!

How might the Saab-Hanwha partnership alter the balance of power in the European naval defense market?

The Shifting Sands of Naval Power: A Saab-Hanwha alliance

The recent deepening partnership between Swedish defense giant saab and South Korean conglomerate Hanwha Ocean is sending ripples through the European naval defense industry. Specifically, it poses a significant challenge to ongoing British and French-led frigate development programs – the Type 31 and FDI (Frégate de Défense et d’Intervention) respectively. This isn’t simply about competition; it’s a potential disruption of established supply chains and a re-evaluation of naval procurement strategies across the continent. The core of the issue lies in Hanwha ocean’s ambitious shipbuilding capacity and Saab’s advanced combat systems integration.

Hanwha ocean’s Shipbuilding Prowess & Saab’s Combat Systems

Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, boasts one of the world’s largest and moast efficient shipbuilding facilities. This capacity, combined with Saab’s expertise in areas like radar technology (specifically the Sea Giraffe radar), combat management systems (CMS), and underwater warfare solutions, creates a formidable offering.

* Scale: Hanwha Ocean can deliver vessels at a rate and cost that many European shipyards struggle to match.

* Technology: Saab’s systems are highly regarded,offering advanced capabilities in areas crucial for modern naval warfare.

* Cost-Effectiveness: The combined offering presents a compelling value proposition for nations seeking modern naval capabilities without the premium price tag often associated with Western European suppliers.

This partnership directly impacts the market for frigates, corvettes, and other surface combatants. The competition isn’t just about winning contracts; it’s about influencing the future direction of naval technology and industrial collaboration.

Impact on the UK’s Type 31 Frigate Program

The UK’s Type 31 frigate program, awarded to Babcock International and BAE Systems, is already facing scrutiny regarding its cost and capabilities. The Saab-Hanwha alliance introduces a new level of competitive pressure.

* Potential for Undercutting: Hanwha Ocean’s shipbuilding costs could allow Saab to offer a more competitive bid for future UK naval contracts, possibly including upgrades or follow-on orders for the Type 31.

* System Integration Alternatives: While the Type 31 utilizes a Thales CMS,the availability of Saab’s 9LV CMS,integrated with Hanwha’s shipbuilding,presents a viable choice for future iterations or export sales.

* Export Market Competition: The combined offering is aggressively targeting export markets where the Type 31 is also competing, such as Indonesia and Poland.

The UK’s reliance on a relatively small number of shipyards and a complex supply chain makes it vulnerable to cost overruns and delays. The saab-Hanwha partnership exploits this vulnerability by offering a streamlined, cost-effective alternative.

The French FDI Frigate and the Emerging Threat

France’s FDI frigate program, led by Naval Group and Thales, is similarly affected. While the FDI is a more technologically advanced vessel than the Type 31, it also faces significant cost challenges and schedule delays.

* radar Competition: Saab’s Sea Giraffe radar is a direct competitor to the Thales NS100 radar integrated into the FDI. The Sea Giraffe’s proven performance and lower cost could appeal to nations considering the FDI.

* CMS Alternatives: Again,Saab’s 9LV CMS offers a competitive alternative to the Thales SYNAPSYS CMS,particularly for nations prioritizing cost-effectiveness.

* Regional Influence: South Korea is actively expanding its defense industry influence in Europe.This includes fostering relationships with countries that might otherwise rely solely on French or british naval systems.

The French government’s emphasis on strategic autonomy in defense is being tested by the emergence of this new competitive force. The FDI program, intended to showcase french naval expertise, now faces a credible challenge from a Saab-Hanwha partnership.

The Role of South Korean Naval Diplomacy

South Korea isn’t simply relying on competitive pricing. It’s actively engaging in naval diplomacy, forging strategic partnerships and offering attractive financing packages to potential customers.

* Technology Transfer: hanwha Ocean is willing to offer technology transfer agreements, a significant incentive for nations seeking to build their own indigenous naval capabilities.

* Financing Options: South Korea’s Export-Import Bank provides competitive financing options, making its naval offerings even more attractive.

* Strategic Alliances: South Korea is actively cultivating relationships with key European nations, seeking to establish itself as a reliable and long-term defense partner.

This proactive approach is further eroding the conventional dominance of European naval suppliers.

Implications for European Naval Industrial Base

The Saab-Hanwha partnership isn’t just a threat to