The order forms part of a letter of intent signed between Saab and FMV, which was announced in June 2014 to support the Swedish Armed Forces’ underwater capabilities for the period of 2015 to 2024. This new order follows previous contracts that were announced in July 2014 and February 2015.
Saab business area dynamics head Görgen Johansson said: "We are proud to have the continued confidence to deliver a new torpedo weapon system to FMV and the Swedish Navy. Where by this the replacement for Torpedo 45 begins.
"Many of Saabs underwater systems are world leading in its segments and with this order we are strengthening our position further."
Deliveries under the order will be carried out during the period of 2016 to 2024.
The new lightweight torpedo system will be developed based on the Torpedo 45, which has already proven its shallow-water, anti-submarine warfare capability.
According to Saab business area dynamics head Görgen Johansson, the LWT is expected to deliver significant performance improvements to help tackle evolving threats in international scenarios.
Last year, FMV also placed an order with Saab for the maintenance of underwater weapon systems and the Hydra sonar system.
Additionally, the FMV contracted Saab in December 2012 to upgrade the Torpedo 62 heavyweight system, known as Torpedo 2000, for the Swedish Navy.