# Saab and Omnigo partner to expand production capabilities

- Link: https://www.military.africa/2025/05/saab-and-omnigo-partner-to-expand-production-capabilities/
- Published: 2025-05-06T10:01:18+01:00
- Author: Sarah Lesedi

Saab Grintek Defence (SGD), a leading South African defense company, has experienced
remarkable growth in recent years, with its turnover doubling over the past two 
years and its order backlog increasing fivefold. This surge in demand for its advanced
electronic warfare and self-protection systems has prompted SGD to take strategic
steps to expand its production capabilities.

On April 9, 2025, SGD signed a supplier agreement with Omnigo, a prominent electronic
manufacturing company, at its Centurion facilities. The agreement, signed by Jan
Widerström, President and Managing Director of Saab Grintek Defence, and Trevor 
Raman, Segment Chief Executive Officer at Reunert Applied Electronics, marks a pivotal
moment in SGD’s efforts to meet the growing global demand for its products across
air, land, and sea domains.

![](https://www.military.africa/wp-content/uploads/2025/05/Saab_Omnigo_MoU_April_2025_Guy_Martin-
768x608-1.jpg)

The supplier agreement is designed to support SGD’s rapid expansion by enhancing
its supply chain and production capacity. Widerström explained that the company 
is facing “exponential demand” from customers worldwide, which has led to the decision
to strengthen its supply chain partnerships. “We have taken a decision to grow the
supply chain.

This is one important step with Omnigo,” he said, emphasizing the critical role 
this agreement plays in SGD’s growth strategy. Under the terms of the agreement,
Omnigo will provide turnkey electronic manufacturing services to Saab, while SGD
commits to specific business volumes for Omnigo, thereby increasing Omnigo’s responsibilities
within the partnership. Widerström described the arrangement as a “win-win” for 
both companies: “They get more predictable sales volumes, more turnover – we get
security of supply,” he told **_defenceWeb_**.

The partnership between SGD and Omnigo is not new; the two companies have maintained
a close relationship for many years. Raman, representing Reunert Applied Electronics,
which oversees Omnigo, highlighted the timeliness of deepening this collaboration.“
Given instability in global supply chains, now is a good time for Omnigo and Saab
to forge deeper partnerships,” he said.

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Raman also noted a recent resurgence in defense contracts after a substantial downturn
in local defense work over the past seven years. “We’ve seen over the last seven
years significant downturn in local defence work but we are now experiencing an 
uptake in defence contracts. We have a versatile workforce to meet demand,” he told
_defenceWeb_. This renewed activity in the defense sector has positioned both companies
to capitalize on emerging opportunities.

Omnigo’s history is deeply intertwined with the South African defense industry. 
Originally established as Factum Electronics in the 1980s, the company became Omnigo
in 1999 through a joint venture with Grintek, which later evolved into Saab Grintek
Defence.

In 2015, Omnigo was acquired by the JSE-listed Reunert Group as a wholly owned subsidiary
under the Reunert Applied Electronics segment, benefiting from a substantial investment
from Reunert. Today, Omnigo specializes in the manufacture of printed circuit board(
PCB) assemblies and offers a comprehensive turnkey manufacturing solution. Its services
include production design for manufacture (DFM), sourcing and procurement of materials,
automated assembly, and the design and industrialization of production and test 
systems.

Omnigo has established itself as a preferred supplier to companies in the defense
and mining industries, making it an ideal partner for SGD’s production needs.

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The new supplier agreement specifically covers the manufacturing of components for
Saab’s self-protection systems, which are used across air, land, and sea platforms.
SGD has a long-standing reputation for producing advanced laser warning and missile
approach warning sensors, which are integral to its Land Electronic Defence System(
LEDS) for land vehicles and its Integrated Defensive Aids Suite (IDAS) for helicopters,
transport aircraft, and combat aircraft.

These systems are critical for protecting military assets from a range of threats,
and the demand for such technologies has been a key driver of SGD’s recent growth.
With numerous multi-year contracts already in place with international customers,
SGD anticipates continued expansion in the coming years, fueled by the global need
for sophisticated electronic warfare self-protection systems.

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SGD’s operations extend beyond manufacturing; the company is also heavily involved
in research and development, creating local intellectual property that is exported
to global markets. More than 90% of its products are sold internationally, with 
exports reaching nearly 20 countries. This global reach is supported by a supply
chain that is predominantly local, with approximately 80% of components sourced 
from South African companies like Omnigo.

This emphasis on local sourcing not only strengthens the domestic defense industry
but also ensures greater control over the supply chain—a critical factor in today’s
rapidly changing global environment. Widerström stressed the importance of securing
the supply chain, noting that the agreement with Omnigo could be expanded further
in the future as both companies adapt to evolving market conditions.

The partnership between SGD and Omnigo is a testament to the resilience and adaptability
of South Africa’s defense sector. By leveraging Omnigo’s manufacturing expertise
and SGD’s innovative product portfolio, the two companies are well-positioned to
meet the increasing demand for advanced defense technologies.

As global geopolitical tensions continue to drive investment in defense capabilities,
SGD’s strategic decision to expand its production capacity through this supplier
agreement ensures that it remains at the forefront of the industry. For Omnigo, 
the agreement provides a stable and growing stream of business, while for SGD, it
secures the reliable supply of critical components needed to fulfill its international
contracts. Together, they are poised to make a lasting impact on the global defense
landscape.

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