Sweden places submarine orders with Saab

Kockums A26 design for next generation Swedish submarine Kockums A26 design for next generation Swedish submarine

JUNE 9, 2014 — The Swedish Defense Material Administration (FMV) has reached an agreement with Saab AB on construction and production plans for Sweden's next generation submarines and to conduct a mid-life update of two Gotland-class submarines.

The orders have been placed as Saab moves ahead with plans to acquire of the former Kockums shipyard from Germany's ThyssenKrupp.

FMV has placed orders with Saab for 2014-2015 valued at SEK 467 million (about $70 million) and signed a Letter of Intent covering the period 2015-2024 that includes a potential SEK 11.2 billion (about $1.7 billion) of orders.

Saab says the SEK 467 million orders cover the mid-life updates of the two Gotland-class boats for construction and production plans for the next generation submarines and to conduct mid-life update of two Gotland-class submarines. This includes the completion of systems design and performance of detail construction. Delivery will be made in 2014-2015. The work will be carried out in Sweden within Saab's business area Security and Defense Solutions.

Saab says the LOI for the period 2015-2024 covers support, development, design and production of submarines and other underwater systems and includes potential orders of approximately SEK 11.2 billion, "provided that necessary decisions are made."

"Saab has substantial experience within the naval domain as supplier to warships and submarines around the world. With today's orders and the Letter of Intent we take the next step towards becoming a full-service provider of submarines for Sweden. It strengthens our offer and our unique competence within systems integration," says Gunilla Fransson, Head of business area Security and Defense Solutions, Saab. .