WARSAW (Reuters) -Poland said on Wednesday it had chosen Sweden’s Saab to supply it with three submarines, in a multi-billion-dollar deal that forms a key element of Warsaw’s efforts to bolster its defences in the Baltic Sea.
Warsaw has been ramping up investments in the armed forces to counter what it sees as a growing threat from Russia after Moscow’s 2022 invasion of Ukraine. The deal under the “Orka” programme to boost Poland’s military is one of the biggest so far among a raft of purchases.
“Sweden presented the best offer in terms of all criteria, delivery time, and operational capability, especially in the Baltic Sea,” Deputy Prime Minister Wladyslaw Kosiniak-Kamysz told a press conference.
He estimated the value of the deal at around 10 billion zlotys ($2.73 billion), and said Sweden had committed to buy some armaments from Poland as part of a wider cooperation agreement, and to provide a “gap-filler” submarine for the Polish army to train on.
Kosiniak-Kamysz said he would like the commercial deal concluded no later than the second quarter of 2026 and he expected the first delivery in 2030.
Sweden’s Prime Minister Ulf Kristersson said the deal was proof of a strong Swedish defence industry.
“This shows the strength not only of the cooperation between our countries, but also of Sweden as a defence-industry nation,” he said in a post on social media platform X.
Saab, which makes a wide range of military equipment including fighter jets, surveillance systems, missiles and submarines, will supply Poland with its A26 submarines.
Saab shares rose following the news and were up 3.2% at 1453 GMT.
The company signed a memorandum of understanding on defence collaboration with Polish armaments group PGZ in September.
Warsaw had also received offers from Germany, Italy, France, Spain and South Korea. Britain had lent its support to the Swedish bid.
($1 = 3.6571 zlotys)
(Reporting by Barbara Erling, Anna Wlodarczak-Semczuk, Pawel Florkiewicz, Alan Charlish and Anna Koper, Additional reporting by Louise Breusch Rasmussen and Johan Ahlander in Stockholm; Editing by Ros Russell)
