Air Transport

Saab Aerostructures is beginning the process of improving efficiency, including cutting its workforce by one-third from the beginning of October to match its capacity to the falling production demands of the Gripen fighter aircraft, which accounts for two-thirds of its work.

Saab says that, with Swedish deliveries of the aircraft to be concluded in late 2007 and South African orders prolonging production until 2012, “Saab Aerostructures must adapt its operations to a lower delivery schedule while meeting the requirements for already committed and potential export orders”.

Saab is also aiming to improve supply-chain efficiency and reduce the proportion of manual work in the manufacture of aircraft structures to make its operations more cost-efffective.

Relocating operations together and reducing the size of the facilities will also contribute to its efficiency drive, the Swedish company says.

The company gave notice to 350 manual workers in June and is in negotiations with unions over the job losses.

By 2007, the Saab aerostructures organisation is expected to consist of around 1,000 employees, compared with the current headcount of 1,500.