Swedish defence manufacturer Saab is strengthening its industrial presence in Portugal by bringing local aerospace companies into the production network for its Gripen E/F fighter aircraft, an effort that could improve its position as Lisbon considers replacing its ageing F-16 fleet.
On November 11, Saab announced a long-term industrial cooperation agreement with Portuguese aerospace supplier Vangest to manufacture eight complex components for the Gripen E/F programme. The partnership represents another step in the Swedish company’s campaign to promote its fighter aircraft as a European alternative to the American F-35 Lightning II, French Rafale and Eurofighter Typhoon.
Under the agreement, Vangest will manufacture the components at its facilities in Marinha Grande, Portugal. The company, which has expanded its activities in the aerospace sector, is known for producing moulds, precision plastic components and specialised industrial products for several industries.
Saab has not disclosed the technical specifications of the eight components, the financial value of the agreement, expected production volumes or the delivery schedule. The announcement refers to eight different types of components rather than a production batch of eight individual parts.
The initial phase of cooperation will concentrate on industrialising the components and preparing them for production. Saab has indicated that the partnership could be expanded in the coming years, depending on programme requirements and the development of the relationship.
The agreement is significant because it gives Portuguese industry a direct manufacturing role in the Gripen programme at a time when the country’s future fighter aircraft procurement remains undecided.
“With Vangest, we are expanding our manufacturing network and strengthening production capacity, while at the same time giving Portuguese industry a concrete role in the Gripen programme,” Johan Segertoft, head of Saab’s Gripen business unit, said in announcing the partnership.
Saab expects the cooperation to generate skilled employment opportunities in the Marinha Grande region while supporting the development of Portugal’s aerospace manufacturing capabilities.
For the Swedish manufacturer, the agreement serves two purposes. It expands an international supply chain that can support increasing Gripen production requirements while demonstrating that a potential Portuguese purchase could deliver tangible industrial benefits beyond the acquisition of aircraft.
Saab has been courting Portugal for more than a year as the country evaluates options to replace its ageing F-16A/B fleet. Rather than relying exclusively on the aircraft’s operational capabilities, the Swedish company has placed considerable emphasis on industrial participation, technology cooperation and the potential transfer of manufacturing activities to Portugal.
The Vangest agreement follows Saab’s efforts to establish relationships with several other Portuguese organisations, including OGMA, an aerospace company associated with Brazilian aircraft manufacturer Embraer, Critical Software and AED Cluster Portugal, the country’s association representing the aeronautics, space and defence industries.
These relationships form part of Saab’s broader strategy to establish a domestic industrial network that could participate in the Gripen programme if Portugal selects the aircraft.
Industrial participation has become an increasingly important consideration in international fighter competitions. Governments purchasing expensive combat aircraft frequently seek more than operational capabilities. They also want domestic employment, technology development, maintenance facilities, manufacturing opportunities and long-term economic returns.
Saab is attempting to demonstrate these benefits before Portugal launches or concludes a formal procurement competition. By assigning actual production responsibilities to Portuguese companies, the Swedish manufacturer can present a more concrete industrial proposition than competitors offering only the possibility of future cooperation.
The approach also reflects Saab’s established export strategy, which has frequently involved partnerships with local industries in countries considering the Gripen.
Portugal initially appeared to be moving towards the American F-35A Lightning II as a replacement for its F-16 fighters. However, in March 2025, Lisbon announced that it would not proceed with the purchase, citing concerns surrounding the changing international security environment and uncertainty in transatlantic relations under US President Donald Trump.
The decision created an opportunity for European manufacturers, particularly Saab, Dassault Aviation and Airbus, to promote their respective fighter aircraft.
However, Portugal has not formally excluded the F-35, and the competition has subsequently become considerably more complicated.
Airbus, representing the Eurofighter consortium, is positioning the Eurofighter Typhoon as another major contender for Portugal’s fighter replacement programme.
In September 2026, Airbus announced that it intended to submit an unsolicited proposal to Portugal for the Typhoon in late October or early November.
Ivan Gonzalez Exposito, Eurofighter’s campaign manager for Portugal, previously told reporters that the proposal would include potential public and private financing arrangements designed to ease the country’s payment obligations.
The offer would also incorporate military cooperation and industrial engagement, although Airbus has not explicitly confirmed whether its proposal would include specific local manufacturing arrangements comparable to Saab’s latest agreement with Vangest.
Gonzalez has argued that the Typhoon is particularly well suited to Portugal’s operational requirements, which primarily involve air policing, NATO quick-reaction alert missions and the protection of national airspace and maritime territories.
According to him, these missions do not necessarily require the advanced stealth capabilities of the F-35, making the Eurofighter a more appropriate option for the Portuguese Air Force.
“For that, the Eurofighter is the ideal solution,” he said, describing the aircraft as the best air-superiority fighter in the world.
Airbus has also been developing relationships with Portugal’s defence and aerospace industries. In October 2025, it signed a memorandum of understanding with AED Cluster Portugal to explore an industrial proposition for the country’s fighter replacement programme.
“In a time when European sovereignty and industrial autonomy are at the forefront of our strategy, Airbus strongly believes that the Eurofighter is the best option for this replacement,” Jose Luis de Miguel, head of Airbus Defence and Space for Europe, said at the time.
Airbus can also draw on its existing industrial and operational relationship with Portugal, which already operates 11 Airbus C295 military transport aircraft.
That existing relationship could provide the European consortium with an advantage in discussions concerning maintenance, logistics, training and long-term military cooperation.
France is also actively pursuing the Portuguese fighter requirement through Dassault Aviation’s Rafale.
In September 2026, Dassault Aviation signed a memorandum of understanding with AED Cluster Portugal to explore industrial cooperation opportunities involving Portuguese companies.
The agreement was signed by Dassault Aviation, representing its Rafale partners Thales and Safran, and AED Cluster Portugal.
The proposed cooperation is intended to identify potential areas of participation for Portuguese aerospace and defence companies in connection with the country’s F-16 replacement programme.
The agreement followed France’s formal submission of the Rafale for Portugal’s fighter competition in July 2026. However, the detailed specifications of the French proposal, including the number of aircraft, procurement costs, weapons systems, sensors, training arrangements, financing and industrial offsets, have not been publicly disclosed.
The offer could include a long-term development pathway based on the Rafale F4 standard and the planned F5 configuration, allowing Portugal to benefit from future improvements in sensors, electronic warfare, weapons integration and combat capabilities.
Dassault has been interested in the Portuguese market since Lisbon abandoned its initial plan to acquire the F-35.
In a March 2025 interview with French newspaper Le Journal du Dimanche, Dassault chief executive Éric Trappier said the company was ready to offer the Rafale as an alternative.
“We really want to offer our aircraft to Portugal,” Trappier said, arguing that the French fighter would provide the interoperability required within NATO.
The Rafale’s principal selling points include its multirole capabilities, operational experience, European supply chain and the possibility of industrial cooperation with Portuguese companies.
Despite the growing competition among European manufacturers, the American F-35 remains a major contender.
Last month, Portugal indicated that it was seriously considering the F-35 proposal alongside other available options.
“The Portuguese state will always decide in accordance with the national interest. There is one point that is also clear: we are seriously considering the F-35 proposal, just as we are considering others,” Portuguese Foreign Minister Paulo Rangel said following a meeting with US Secretary of State Marco Rubio.
The statement suggests that Lisbon’s earlier decision to abandon the F-35 acquisition did not represent a permanent rejection of the American aircraft.
The F-35 has become one of the most widely selected combat aircraft in Europe over the past decade, with several NATO members choosing the fifth-generation stealth fighter as the centrepiece of their future air forces.
Its combination of low-observable technology, advanced sensors, data fusion and integration with the wider US and NATO military ecosystem provides a powerful competitive advantage.
Some reports have indicated that internal Portuguese Air Force assessments placed the F-35A first among the competing aircraft, with the Gripen E reportedly ranking second under an evaluation framework involving approximately 20 technical criteria. However, these assessments have not established a final government decision.
The distinction between the two aircraft is important.
Saab’s Gripen E is generally classified as a 4.5-generation multirole fighter. It incorporates an active electronically scanned array (AESA) radar, advanced electronic warfare systems, modern weapons integration and network-centric combat capabilities.
Its design also emphasises relatively low operating costs, maintenance efficiency and the ability to operate from shorter and less conventional runways.
These characteristics could appeal to Portugal, particularly if the country seeks to maintain a capable air force without committing an excessively large proportion of its defence budget to aircraft acquisition and lifetime operating expenses.
The F-35, however, offers capabilities that the Gripen E cannot fully replicate, particularly stealth and advanced sensor fusion. Its ability to collect, process and distribute battlefield information makes it a particularly attractive platform for countries seeking deeper integration with American and NATO military networks.
For Portugal, the choice will therefore involve more than comparing individual aircraft specifications. It will require balancing operational requirements, procurement costs, long-term maintenance, interoperability, industrial participation and strategic relationships.
Saab’s campaign in Portugal also comes against the background of its unsuccessful attempt to secure Canada’s future fighter requirement.
Canada selected the F-35 over competing aircraft, with stealth capabilities and integration with the North American defence architecture playing important roles in the decision. However, Ottawa has subsequently placed additional F-35 acquisitions under review amid growing trade and diplomatic tensions with Washington.
The Canadian experience illustrates the difficulties facing Saab when competing against the F-35 in markets where strategic interoperability and fifth-generation capabilities are major procurement considerations.
Nevertheless, the Swedish company has several advantages it can emphasise in Portugal.
The Gripen E/F offers a modern European combat aircraft with comparatively lower operating costs, flexible maintenance requirements and an established model of international industrial cooperation. Saab can also present Portuguese manufacturers with immediate opportunities to participate in the aircraft’s supply chain rather than relying entirely on future commitments.
The Vangest agreement is therefore more than a manufacturing arrangement involving eight components. It is part of a broader effort to establish Saab as an industrial and strategic partner for Portugal.
By expanding cooperation with Portuguese companies, Saab is attempting to strengthen its position before any formal procurement decision and demonstrate that selecting the Gripen could support domestic aerospace development, employment and technological capabilities.
However, the final outcome will depend on whether these industrial benefits can outweigh the F-35’s technological advantages and the competing European manufacturers’ offers.
With the Rafale, Eurofighter Typhoon and F-35 all actively pursuing the same requirement, Portugal faces a complex decision that will shape its air force for decades.
For Saab, the immediate challenge is to convince Lisbon that the Gripen E/F offers the right combination of combat performance, affordability, operational flexibility and domestic industrial benefits.
The partnership with Vangest strengthens that argument, but whether it will be enough to secure Portugal’s next-generation fighter contract remains uncertain.
