A Swedish defence manufacturer was stepping up its co-operation with a local partner with the launch of a new joint venture division, the Swedish firm said yesterday.

Saab of Sweden and partner Grintek said the launch of the new division, Grintek Integrated Defence Solutions (Grids), would strengthen South Africa's drive to grow exports and secure jobs, technologies and skills.

"The new venture is a system integrator and software house specialising in developing, building and supporting command and control systems," the two said in a joint statement.

Grintek and Saab's co-operation stems from the South African purchase of the Gripen advanced fighter jet.

Grintek chairman Zoli Kunene said the creation of Grids was "just the latest expression of a partnership with Saab which has seen us go from strength to strength in highly competitive international markets".

While the company's products and technological innovation has always been world class, it was "the close co-operation borne out of Saab's industrial participation (in) activities in South African linked to the sale of the Gripen which has helped to take us into new applications and markets".

JSE Securities Exchange-listed Grintek manufactures and integrates civilian and defence electronics and communications equipment.

Saab is a major European aerospace and electronics manufacturer and maker of the Gripen fighter, which will go into service with the SA Air Force from 2007.

Yesterday also marked the opening of the new facilities of Logtronics, another Grintek-Saab company.

Logtronics specialises in support and maintenance for civil and military hi-tech electronic systems and equipment.

Visiting South Africa for the first time in his new role as Saab chief executive, Ake Svensson said Grids' creation and the launch of the new Logtronics facility "are clear signals of our long-term commitment to South Africa.

"Together with our friends at Grintek, we are steadily ensuring sustainable growth in a key hi-tech sector of the South African economy."

Swedish ambassador Helena Nilsson also praised the expansion of the joint venture, as "another expression of the growing ties between our two countries".

The success was an indication that "two countries who were allied in fighting the injustice of apartheid can now join forces to help grow the South African economy in the interests of job creation and economic and social stability for the future".

It was expected that Grids would play a major role in researching, developing, manufacturing and marketing network-centric command and control systems, an area in which Saab is a world leader.

These systems are increasingly central to the national security, disaster relief, search and rescue, and joint operations of modern defence forces.

Increasing attention is being given to extending their capabilities to civilian emergency services.

Grintek closed 1c down at R1,05 on the JSE yesterday.

With acknowledgements to Sapa and the Business Report.