The order from the Australian Defense Materiel Organization is for 84mm Carl-Gustaf ammunition.
"This shows the high level of trust Australia has for the Carl-Gustaf system," said Tomas Samuelsson, head of Saab's Dynamics business area. "It is a strategic and important contract securing production as well as contributing to further development of the system."
The Carl-Gustaf is a man-portable shoulder-fired weapon. Australia selected the system for its troops in 2009. Saab has exported it to more than 40 nations.
Manufacturing for the contract will be done by Saab in Karlskoga, Sweden, and deliveries are to take place within six months.
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