Saab’s acquisition of Deform AB in Degerfors, Sweden, isn’t just a corporate move—it’s a strategic play to bolster Sweden’s defense supply chain. Deform, a 116-year-old specialist in hot and cold forming of metallic materials, has been a key supplier to Saab’s submarine production for decades. Now, bringing it under the Saab umbrella ensures a steady flow of critical components for the Blekinge-class submarines and beyond.
This isn’t about buying a supplier—it’s about securing a unique capability. Deform’s expertise in shaping tough, demanding materials is rare, and Saab knows it. By integrating Deform into its Kockums business area, Saab isn’t just safeguarding supply; it’s embedding a specialized skill set directly into its operations. Mats Wicksell, head of Saab’s Kockums business area, puts it bluntly: “Deform has a unique expertise in the shaping of tough and demanding materials. They supply, among other things, to Saab’s ongoing production of the Blekinge-class submarines. We see it as a winning solution for both Kockums and Deform to secure the supply chain and jointly develop more businesses by making Deform part of the Saab family.”
For Deform, this acquisition means stability and growth. As part of Saab, it can leverage the defense giant’s resources to expand its capabilities and explore new opportunities. For Saab, it’s about control—control over a critical link in its submarine production chain and control over a niche manufacturing process that’s hard to replicate. It’s a classic example of vertical integration, where a company absorbs a supplier to streamline operations and reduce risk.
But here’s the bigger picture: This deal highlights a growing trend in defense manufacturing. As geopolitical tensions rise, nations are tightening their grip on supply chains, ensuring that critical components stay within their borders. For Sweden, this means shoring up its defense industrial base, especially as it ramps up submarine production to meet both domestic and international demand.
The acquisition also underscores the value of legacy expertise. Deform’s century-old know-how in forming metallic materials is irreplaceable in the short term. By acquiring Deform, Saab is not just buying a company—it’s preserving and leveraging a specialized skill set that would be costly and time-consuming to rebuild. This move could set a precedent for other defense contractors looking to secure rare manufacturing capabilities.
For the 37 employees at Deform, the acquisition brings job security and access to Saab’s broader resources. But it also comes with expectations. Saab will likely push for efficiency gains and integration, which could mean changes in how Deform operates. The challenge will be maintaining the agility and innovation that come with being a smaller, specialized firm while benefiting from Saab’s scale and reach.
This deal isn’t just about submarines—it’s about shaping the future of defense manufacturing. By securing Deform, Saab is ensuring that its supply chain remains robust, its production timelines stay on track, and its competitive edge in submarine technology remains sharp. It’s a bold move, but in an industry where reliability and precision are non-negotiable, it’s also a necessary one.