LINKOPING, Sweden, Jan. 25 (UPI) -- Saab Defense has received an order from the European Defense Agency for production of 84mm recoilless rifle ammunition for member countries.
The order comes under the terms of Saab´s 2014 framework agreement with EDA that allows for coordinated procurement of Carl-Gustaf ammunition by EDA member states Estonia, Latvia, Lithuania, the Czech Republic and Poland.
That agreement -- effective for five years with two additional option years -- carries a potential value of nearly $53.48 million.
"This order is further proof of our ability to deliver Carl-Gustaf ammunition in a flexible and efficient way," said Torbjorn Saxmo, head of Saab's Ground Combat division, which is part of its Dynamics business area. "In order to maintain capable and deployment-ready forces, the customer has high demands on the weapon deliveries and I am proud that we can offer these solutions whenever needed."
Saab said deliveries of the ammunition will occur next year.
The Carl-Gustaf M4 is a recoilless rifle for use against armored vehicles, obstacles and enemies in buildings and other fortifications.