MILAN — Saab has finalized a SEK 47 billion ($4.8 billion) contract with the Polish government for the production of three Swedish-made A26 submarines intended to replace the country’s Soviet-era Kilo-class submarines.

The Swedish company announced the long-awaited deal seven months after Poland officially selected Saab’s offer over a multitude of pan-European contenders.

The contract includes a weapon package and a training-support element with final deliveries planned for 2038.

“It is a very large and long-term deal — it will make the Polish Navy one of the strongest in all of NATO. A strong Polish submarine force strengthens security in our shared Baltic Sea and across the alliance,” Swedish Prime Minister Ulf Kristersson said on X.

He added that “hundreds” of Polish companies are set to become new subcontractors to Saab, with the Linköping-based company investing up to €100 million ($114 million) in Poland.

“We are deeply honoured that Poland has chosen Saab’s submarines to bolster its defence capabilities and strengthen the strategic partnership between our two nations,” Micael Johansson, president and CEO of Saab, said in a statement. “The three A26 submarines meet Poland’s current and future defence requirements and will play a pivotal role in enhancing security in the Baltic Sea region.”

The A26 submarines are equipped with long-range precision strike torpedoes and offer the possibility to also carry submarine-launched missiles to engage targets both at sea and on land, according to Saab’s promotional material.

The company advertises the watercraft as having an “extremely-low” acoustic signature, far lower than the frequency ranges of traditional submarines.