Defence firms could struggle to meet jump in NATO demand - Saab CEO


  • World
  • Thursday, 19 May 2016

Saab Chief Executive Hakan Buskhe speaks at a news conference at the World Trade Centre in Stockholm February 16, 2011. REUTERS/Bertil Ericscon/Scanpix/Files

LINKOPING, Sweden/BRUSSELS (Reuters) - Pressure from the United States on NATO allies to increase their defence spending could strain the capacity of the arms industry to keep up with demand, the head of Swedish fighter jet and submarine builder Saab said.

While many analysts believe European arms makers have plenty of spare capacity, Saab Chief Executive Hakan Buskhe pointed to tensions over Russia's actions in Ukraine and said alliance members would have to respond to the U.S. demands.

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