Saab has been contracted by the European Defence Agency (EDA) to supply ammunition for the Carl-Gustaf man-portable weapon system.
As part of Saab´s framework agreement signed with EDA in 2014, the contract will see the company produce and deliver Carl-Gustaf ammunition to Estonia, Latvia, Lithuania, the Czech Republic and Poland.
The framework is in effect for five years, with a possible extension of two further years and covers potential orders of roughly SEK460m ($53.71m).
Saab Dynamics Ground Combat head Torbjörn Saxmo said: "This order is further proof of our ability to deliver Carl-Gustaf ammunition in a flexible and efficient way.
"In order to maintain capable and deployment-ready forces, the customers have high demands on the weapon deliveries and I am proud that we can offer these solutions when ever needed."
Manufactured by Saab Bofors Dynamics, the Carl-Gustaf is an 84mm, reusable, shoulder-fired, multi-role, recoilless rifle.
It is designed to help troops engage rocket-propelled grenade and machine gun attacks from ranges of 900m and beyond.
The weapon includes smoke and illumination features, and uses armour-penetrating and anti-personnel ammunition, as well as ammunition for built-up areas.
The company has delivered successive upgrades to the weapon in order to meet changing user requirements. The latest version, the Carl-Gustaf M4, reduces the weight from 10kg to less than 7kg.
Carl-Gutsaf is currently used by 40 countries worldwide, including Australia, Belgium, Canada, India, Germany, Malaysia, the US and the UK.
Earlier this month, Saab secured a SEK1.4bn ($151.03m) contract from an undisclosed nation to supply Carl-Gustaf ammunition, with the potential for additional orders.
The contract will see Saab produce and deliver three different types of ammunition for the Carl-Gustaf system.
Image: A Carl-Gustaf Recoilless rifle. Photo: courtesy of Soldatnytt / Åpen dag Sessvolmoen.