Saab has won a Skr930m ($100m) contract order from the US Army for the delivery of Carl-Gustaf ammunition weapon system and AT4 systems.

The rifle is the upgraded version of the portable, shoulder-launched, multi-role weapon system.

In 2019, the company signed a multi-year framework agreement for the purchase of Saab’s AT4 disposable weapon system and ammunition for the Carl-Gustaf recoilless rifle.

The indefinite-delivery, indefinite-quantity (IDIQ) contract will allow the US Army, US Marines Corps (USMC) and US Special Forces to place orders valued up to $445m during a five-year period.

The latest order was booked in the second quarter of this year. Delivers are scheduled to commence in the following year.

Once delivered, the weapon systems will be operated by the US Army, USMC and Special Forces Command.

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By GlobalData

The US Armed Forces have procured more than 600,000 AT4s from Saab since 1987.

In 2018, the US Army planned to buy the upgraded version of the Carl-Gustaf M4, designated M3E1 in the US. The modified version of the weapon has a reduced weight of less than 7kg.

Saab US president and CEO Erik Smith said: “The Saab family of shoulder-fired munitions provides the US Armed Forces with effective capabilities against a wide area of targets.

“With these systems, soldiers and marines gain reliable, easy-to-use technology optimized for complex environments and engagements.”

In May this year, Saab signed a contract to deliver Carl-Gustaf M4 to the Latvian Armed Forces and Estonian Armed Forces.

The order delivery is expected to conclude between 2021 and 2024.