Saab has received a contract from the Swedish Defence Materiel Administration (FMV) to extend the service life of the RBS 97 (Hawk) air defence missile system.
Part of Sweden's national defences, the missile system is currently used by two battalions.
The RBS 97 is an all-weather, surface-to-air missile system, which can destroy high-flying targets at a range of up to 40km.
Under the deal, Saab will upgrade the air defence system to effectively counter current and future airborne threats.
System components to be upgraded include the high-power illuminating radar, missile launcher, and combat command unit.
Saab will carry out the service life extension on a staged basis from now until 2019.
Work will be performed in Växjö, Halmstad and Järfälla, Sweden.
Saab Support and Services Land business unit weaponry services head Joakim Haux said: "This order provides Saab with an opportunity to expand, and puts us in a good position to support the customer when the time comes to replace the RBS 97 missile system."
Saab and the Swedish armed forces are currently planning to transfer personnel from Sweden's Air Defence Regiment for skills development.