ThyssenKrupp in talks with Saab to sell shipbuilding assets in Sweden

German steelmaker ThyssenKrupp said it is in an early stage of negotiations with Swedish defense company Saab AB to sell its shipbuilding business in the Scandinavian country. A company spokesperson said both Saab AB and ThyssenKrupp Industrial Solutions have signed a declaration of intent to secure a sale deal that could find regulatory approval.

The German firm said the sale would satisfy the wishes of the Swedish government, making it possible to start a nationwide shipbuilding industry. A ThyssenKrupp official said the decision would preserve about 900 jobs.

The acquisition of ThyssenKrupp Marine Systems AB will allow Saab to fulfill its ambitions. Saab brings leading military defense and civil security products, services and solutions to the global marketplace. Saab has facilities and employees on all continents and is constantly evolving, adopting and improving new technologies to meet changing needs.

The German firm noted that in the future it plans to focus on its business of building warships at home in Kiel, Hamburg and Emden. The company said its backlog is full enough to support high utilization and employment through 2020.

ThyssenKrupp said earlier that this year it has been on track to its annual target despite difficulties in the first quarter, adding that apart from Steel Americas, all businesses have been able to make positive contributions.