The Swedish Defence Materiel Administration (FMV) has awarded contracts worth Skr8.6bn ($1.03bn) to Saab for the construction of two new Type A26 submarines and a mid-life upgrade for two Gotland-class submarines.
This new development will see Saab construct, verify, and deliver two new Type A26 submarines for the Swedish Navy for a total order value of SEK7.6bn ($912.84m).
Saab Security and Defence Solutions business area head Gunilla Fransson said: "The A26 will be a unique and high-tech submarine with proven modular design, which gives the platform a high level of availability at a low life-cycle cost.
"The submarine will have long-endurance submerged performance and excellent manoeuvrability in all waters."
In addition, the company will be responsible for performing a mid-life upgrade on two of Sweden's existing Gotland-class submarines, including an overhaul and upgrade of the combat system to a total order value of SEK2.1bn ($252.23m).
The delivery of the new submarines is expected to commence in 2022 and will be completed in 2024, while the delivery of upgraded submarines is scheduled for in late 2018 and late 2019, respectively.
Claimed to be the world's most modern submarine programme, the Type A26 submarine will be powered by conventional diesel-electric propulsion machinery.
It will also feature the Kockums Stirlingair-independent propulsion (AIP) system, which allows the submarine to very stealthy and difficult to detect.
Fransson added: "Safety is paramount and A26 will be highly survivable thanks to modern underwater stealth technology and a unique heritage of shock resistant design."
Saab will design and construct the new submarines at its facilities in Malmö, Karlskrona, Järfälla and Linköping, Sweden.
Image: Saab will build two Type A26 submarine for Sweden. Photo: courtesy of Saab AB.