Swedish corporation Saab is investigating opportunities to manufacture components and spare parts in Bulgaria for the defence, aviation and space industries.

This was announced on June 22 by Daniel Boestad, marketing manager for Bulgaria and head of the SAAB and Gripen International office in Sofia.

The outsourcing of some of Saab's operations to Bulgaria is likely to be one of the projects under the offset scheme that will be attached to any fighter jet deal between Gripen and the Bulgarian Defence Ministry.

Gripen is competing against Lockheed Martin and Boeing for the supply contract.

In addition to the fighter jet competition, Saab is also interested in supplying weapons, electronic components and nautical equipment.

The Sofia office will enhance the relationship with Bulgaria's institutions, specifically the ministries of defence and economy, the Bulgarian air force and the Bulgarian industry, Boestad said.

"We are confident that what we can offer is close to unique - a wide range of defence and civil security products and systems. Among those are the newest generation multi-role NATO-interoperable Gripen fighter, which can meet the future defence requirements of the Bulgarian Air Force, much earlier and at a significantly lower cost than any competitor," Boestad said.

The offset scheme will depend largely on the requirements of the Economy Ministry, said the Swedish company.

The Swedish business is ready to offer investment solutions involving members of Investor Group, the biggest public holding in Sweden. In addition to Saab, these include Ericsson, Electrolux, Scania, Volvo and SKF.

Saab is one of the world's leading high-technology companies, with its main operations focusing on defence, aviation and space. In 2005 it completed its purchase of 70 per cent of South African defence and communications group Grintek.

It is the manufacturer of the Gripen, the first fourth generation fighter jet to be fully operational. The aircraft has been ordered by the South African, Swedish, Czech, and Hungarian air forces, and is a contender in a number of other countries. The group covers a broad spectrum of competence and capabilities in systems integration.

Saab is one of Northern Europe's largest exporters, with more than 75 per cent of its backlog generated through sales outside Sweden. Saab has partnership and collaborative relations with a number of global companies, including Airbus on the A380 Super-jumbo programme, Ericsson, Volvo-Aero, and General Electric. With turnover of more than two billion euro, the company employs about 13 000 people.