Europe's defence contractors need assurances that capitals will continue to pay for defence gear so they can justify long-term investment to build out production capacity, Saab CEO Micael Johansson told Euractiv.

Speaking just days before he takes over as president of the Aerospace, Security and Defence Industries Association of Europe (ASD), the main Brussels lobby group for the bloc's defence sector, the Swedish executive was clear that more than the current rush of orders is necessary to sustain the industry's investment drive.

"If you want an ammunition capability that can ramp up quickly in a conflict situation – an ever-warm factory – there will be a premium to pay for having it ready, and those commitments are needed from governments," he said.