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Saab has secured a SEK1.4bn ($151.03m) contract from an undisclosed nation to supply ammunition for the Carl-Gustaf man-portable weapon system, with the potential for additional orders.

Under the terms of the contract, Saab will produce and deliver three different types of ammunition for the Carl-Gustaf system.

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Saab business area Dynamics head Görgen Johansson said: "We have now received this significant order for Carl-Gustaf ammunition. This further strengthens our leading position on the market for shoulder-launched weapons systems."

Deliveries of the system are scheduled to take place between 2016 and 2019.

Manufactured by Saab Bofors Dynamics, the Carl-Gustaf is an 84mm, reusable, shoulder-fired, multi-role, recoilless rifle.

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It is designed to help troops engage rocket-propelled grenade and machine gun attacks from ranges of 900m and beyond.

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The weapon includes smoke and illumination features, and uses armour-penetrating and anti-personnel ammunition, as well as ammunition for built-up areas.

"This further strengthens our leading position on the market for shoulder-launched weapons systems."

Carl-Gutsaf is currently used by 40 countries across the globe, including Australia, Belgium, Canada, India, Germany, Malaysia, the US and the UK.

The company has delivered successive upgrades to the weapon in order to meet changing user requirements.

In November, Saab secured a contract from the Austrian Armed Forces to supply Carl-Gustaf ammunition.

Last June, Saab received a contract from the European Defence Agency (EDA) to supply Carl-Gustaf ammunition to five agency member states.

Image: Carl Gustaf recoilless rifle round ammunition. Photo: courtesy of Spike78.