Swedish defense company Saab AB said Monday it has received an additional order worth approximately 9.6 billion Swedish kronor for two new submarines for the Swedish navy, pushing the total project cost to nearly three times its original budget.
The new order from the Swedish Defence Materiel Administration brings the total cost for the two Blekinge-class submarines to 22.4 billion kronor, up from the 7.6 billion kronor contract signed in 2015.
According to the company, the latest funding is for the final production phase and additional services, with most deliveries now scheduled between 2026 and 2032.
The project has faced significant delays, with the original completion date of 2024 having been previously pushed to 2027-2028 after an earlier 5.2 billion kronor order in 2021.
“Saab is currently building the world’s most advanced conventional submarines for Sweden,” said Micael Johansson, President and CEO of Saab.
“Following excellent cooperation between Saab and FMV we have ensured that Sweden has a state-of-the-art underwater capability which will contribute to keeping our nation’s waters safe for decades to come,” he added.
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Swedish defense company Saab AB has received an additional order for its new submarines, pushing the total project cost to nearly three times the original budget and further delaying deliveries.