CRANSTON – When Saab Inc. first sought to expand its maritime portfolio to the United States, Rhode Island stood out as a natural fit, said Erik Smith, president and CEO of the Stockholm-based defense and aerospace manufacturer’s United States operations.
The company has already expanded globally beyond Sweden, but has just launched what Smith hopes will be the start of a robust presence in the U.S.
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“This is the first time we’ve brought this capability to the U.S.,” said Smith, a Roger Williams University alumnus, “and the full intention of this organization is to run the manufacturing of this portfolio out of Rhode Island.”
In April, Saab announced that it would partner with SyQwest, which specializes in echo sounder technology, to launch a new maritime division in Cranston. Located on Kenney Drive, the 10,000-square-feet manufacturing facility is moving forward to meet a $5.8 million contract Saab received from the U.S. Navy for anti-submarine warfare training target production.
If production passes initial verification tests, the Navy will extend this contract 10 years, with a potential value of up to $173.2 million in deliveries.
Rhode Island’s growing blue economy and higher education landscape made the state an appealing launch pad for Saab’s U.S. maritime operations, Smith said.
The company was attracted to Rhode Island in part for its proximity to the Naval Undersea Warfare Center in Newport, he noted, and its customer base in general. Saab also plans to forge partnerships with Rhode Island’s colleges and universities for research and development opportunities, with particular interest in Roger Williams University and the University of Rhode Island.
“Rhode Island to me is unique in the geography of the region as well as the customer being right here in Narragansett Bay,” Smith said. “Between the academic community, the navy customer community and the partnerships that we found here, there really wasn’t a better place for us to start to build our autonomous and underwater systems business.”
Founded in 1937 in Stockholm as an aircraft manufacturer for the Swedish Air Force, Saab went on to become best known for its automobile manufacturing in the following decades. But, facing financial struggles by 2000, Saab sold its automobile division to General Motors, where the unit eventually went defunct in 2011.
Saab now narrows its focus to the defense and aerospace industries, and is eyeing growth in the U.S. maritime sector, starting with its Rhode Island facility.
The Cranston facility is just getting on its feet, with just one Saab employee currently hired at the location. In a year, Smith expects 10 to 15 employees, with plans to increase this number to 50 as production ramps up.
Despite widespread workforce shortages, Saab and its partner organization in Cranston aren’t concerned about meeting this staffing need, said SyQwest chairman Robert Tarini. Again, location plays a role in this confidence.
“The reality is in southern New England in general, you’ve got a pretty robust population of talent that can serve our needs, both now and in the future,” Tarini said. “So if you look around Connecticut, Massachusetts, that whole southern New England community, you can pull a lot of talent into Rhode Island to really start to build out the footprint.
“That’s part of the appeal, a hotbed for that kind of talent,” he added. “It’s like corn in Iowa.”
Jacquelyn Voghel is a PBN staff writer. You may reach her at voghel@pbn.com.
