Canada could soon play a direct role in manufacturing advanced fighter jets destined for Ukraine as Swedish defence giant Saab signals it is prepared to establish aircraft production in Canada if Ottawa selects the company’s Gripen E fighter jets for the Royal Canadian Air Force.
The announcement adds a dramatic new dimension to Canada’s ongoing fighter jet procurement debate and could position the country as a key defence manufacturing hub supporting both NATO allies and Ukraine’s military modernization efforts amid its continuing war with Russia.
Speaking at the annual CANSEC defence trade show in Ottawa, Saab Deputy CEO Andres Carp revealed that Canada has been offered the opportunity not only to purchase Gripen E fighter aircraft but also to become a production and export centre for future deliveries to Ukraine.
Carp stated that if Canada proceeds with the Gripen program and requests domestic manufacturing, some of the aircraft intended for Ukraine’s air force could potentially be built on Canadian soil.
“It has been discussed and offered for Canada,” Carp said during an interview while standing beside a full-scale replica of Saab’s Gripen E fighter aircraft displayed outside the convention centre.
The proposal comes as Ukraine continues seeking advanced Western fighter aircraft to strengthen its air defence and combat capabilities against Russian aggression. Saab has already committed to supporting Ukraine through a European Union-backed arrangement that could see up to 20 new Gripen jets produced for the Ukrainian military, while Sweden is expected to donate 16 older-generation Gripen aircraft directly to Kyiv.
Industry analysts say the move could create significant economic and strategic opportunities for Canada by generating high-skilled aerospace jobs, strengthening domestic defence manufacturing, and increasing Canada’s role in international security partnerships.
The development also places additional pressure on Prime Minister Mark Carney and the federal government as Ottawa continues reviewing its controversial plan to purchase 88 American-made F-35 fighter jets from Lockheed Martin.
The review has now stretched for more than a year amid growing political and economic tensions between Canada and the United States, particularly following trade disputes and concerns over Canada’s long-term defence independence.
Although Canada has already committed funding toward the first 16 F-35 aircraft and expects to begin testing them next year, the Carney government has not finalized whether it will proceed with the full order.
Carp acknowledged that Saab has not received any timeline from Ottawa regarding the completion of the fighter jet review process but emphasized the company remains patient and prepared to work closely with Canada should the opportunity arise.
“We understand this is a very complex question,” Carp said.
The Saab proposal arrives just one day after the federal government announced it is entering negotiations with Saab to acquire a new fleet of advanced GlobalEye surveillance aircraft for Canada’s military operations.
However, Defence Minister David McGuinty stressed that negotiations surrounding Saab’s surveillance systems would remain separate from the government’s fighter jet review.
McGuinty said Ottawa intends to “take the time we need to take to get this right,” signaling the government is carefully weighing economic, military, geopolitical, and industrial considerations before making a final decision.
Meanwhile, Lockheed Martin used the Cansec trade show to defend the economic value of the F-35 program, highlighting that its Canadian partnerships currently support approximately 4,500 jobs across the country.
The growing competition between Saab and Lockheed Martin is now evolving beyond a simple military procurement battle and increasingly becoming a broader debate about Canada’s future role in global defence manufacturing, technological sovereignty, and support for allied nations such as Ukraine.
If Saab’s proposal moves forward, Canada could potentially emerge not only as a customer of advanced fighter aircraft but also as a major North American production centre contributing directly to international defence operations and Ukraine’s long-term security strategy.