The new agreement states that FMV can place orders up to a total value of SEK236m ($26.09m) for product support and maintenance of underwater weapon systems during the period from 2017 to 2019.
The deal has been signed under the terms of the Letter of Intent (LOI) between the two Swedish parties, which was announced on 9 June 2014.
Saab will offer support to the underwater capabilities of the Swedish Armed Forces for the period between 2015 and 2024 under the arrangement.
Saab Business Area Dynamics Underwater Systems Business Unit head Anne-Marie Vösu said: “This contract secures the availability of operational weapon systems for the Swedish Navy.
“We will plan for and conduct necessary measures to keep the systems ready whenever the customer needs.
“The contract is a proof of the customer’s trust in our knowledge and expertise within the underwater domain, and it is an important foundation for our continuing business.”
The Swedish company has the expertise to design new underwater systems that are suitable for shallow waters, as well as for the specific environment found in the Baltic Sea.
Saab also designs and develops communication systems, customised propulsion systems and homing systems.
The company's partnership with FMV has to date seen them deliver a wide range of underwater solutions for weapon systems, autonomous underwater vehicles, sensors and mine hunting to the Swedish Armed Forces.