Saab has received a contract from the European Defence Agency (EDA) to supply Carl-Gustaf weapon system ammunition to five agency member states.
This is the first order under the framework agreement signed by the EDA and Saab in July 2014. The Skr127m ($15.4m) contract covers the supply of Carl-Gustaf ammunition to Estonia, Latvia, Lithuania, the Czech Republic, and Poland.
Effective for five years, with a possible extension of two more years, the agreement covers potential orders of nearly Skr460m ($55.9m).
Saab Nordic and Baltic market area head Anna Fröjd said: "This framework agreement with the EDA is a great example of Saab's willingness and ability to continuously adapt to customer needs and offer advanced products that are also cost efficient."
EDA Capability, Armament and Technology Director Peter Round said: "By pooling resources through this multinational agreement, participating member states ensure they get the capabilities they need in the most efficient way possible.
"It also allows participating countries to purchase ammunition according to their national needs, despite having different budget cycles."
Manufactured by Saab Bofors Dynamics, Carl-Gustaf is an 84mm reusable, shoulder-fired, multi-role recoilless rifle, designed to help troops effectively engage enemy rocket-propelled grenades and machine gun attacks from ranges of 900m, and beyond.
Operated by a two-man crew, the weapon also supports gunnery and combat training objectives, with sub-calibre trainers, full-calibre practice rounds, and simulators.
Carl-Gutsaf is currently used by 40 countries worldwide, including Australia, Belgium, Canada, India, Germany and Malaysia, as well as the US, and UK.
Deliveries under the contract are scheduled to take place during 2016.
In addition, the company also secured a contract for the production and delivery of camouflage equipment to the US Army over the next six months.
Image: Carl-Gutsaf weapon enables troops to effectively engage enemy rocket-propelled grenades and machine gun attacks. Photo: courtesy of Saab AB.