Saab Signs Canadian Teaming Agreements for Gripen E Assembly as F-35 Procurement Remains Under Review
Swedish defense firm Saab has signed agreements with IMP Aerospace & Defence, Magellan Aerospace, and CAE Inc. to assemble and support Gripen E fighter jets in Canada, contingent on Ottawa selecting the aircraft instead of or alongside its current F-35 order. The announcement follows Prime Minister Mark Carney's pause of the planned 88-jet F-35 procurement.
Swedish defense manufacturer Saab announced Tuesday that it has signed a teaming agreement with Halifax-based IMP Aerospace & Defence covering the final assembly, in-service support, and training of Canadian-made Gripen E fighter jets. 
The agreements between Saab and the Canadian companies are conditional on Ottawa purchasing Gripens instead of, or in addition to, U.S.-made F-35 stealth jets manufactured by Lockheed Martin.
Alongside the IMP Aerospace & Defence deal, Saab announced a memorandum of understanding with Mississauga-based Magellan Aerospace to manufacture airframe and composite structures. The company also signed a training agreement with Montreal’s CAE Inc. These partnerships aim to position Canadian industry as part of the global Gripen program and potentially establish a national industrial program for fighter jets in Canada.
The announcement coincides with the Canadian Aerospace Summit and follows a decision by Prime Minister Mark Carney to pause plans to proceed with an order for 88 F-35s. The review was launched to consider purchasing all Gripens or operating a mixed fleet. This review was initiated after U.S. President Donald Trump made trade and annexation threats and was originally supposed to have concluded a year ago.
Despite the ongoing review of the procurement strategy, the Royal Canadian Air Force announced last Friday that it received its first pair of F-35 jets. Canada currently has 16 F-35s under contract and has paid long-lead costs on 14 more. The remaining 72 jets of the 88-aircraft order are under review. Around 30 Canadian firms currently supply F-35 operations, supported by roughly 10 prime partners and 250 suppliers globally.
Any potential shift toward the Gripen E involves geopolitical considerations, as the aircraft's engine—the F414-GE-39E made by General Electric—remains subject to U.S. export control. 
Industry Minister Mélanie Joly stated that a decision on major defence procurements could come within a couple of weeks as of Oct. 14.