Sweden's Saab Secures Major Missile Upgrade Deal with Germany

Saab has secured a $159 million deal with Germany to upgrade and maintain the Taurus KEPD 350 cruise missiles for a decade. This agreement includes system enhancements and life cycle maintenance to boost missile effectiveness. Saab shares soared on the news, reflecting rising European defense investments.

Saab, a prominent Swedish defense and aviation company, has announced a significant $159 million order from Germany to upgrade and maintain the country's Taurus KEPD 350 cruise missiles. This contract spans a period of ten years until 2035, reflecting a substantial commitment to enhancing Germany's military capabilities.

The modernization plan includes critical system upgrades and long-term maintenance for the German Air Force's missile arsenal. Cruise missiles, known for their low-altitude flight paths, are challenging for air defense systems to detect, enhancing their strategic value. Saab's partnership with Taurus Systems, a joint venture with MBDA Germany, has facilitated this continued collaboration.

Following the announcement, Saab's shares climbed by 11.3% in the afternoon session, having risen earlier to a record high on Stockholm's stock exchange. This boost is indicative of a broader trend, as European defense stocks gained momentum in anticipation of increased military spending, driven by recent EU commitments.

(With inputs from agencies.)