April 10 (UPI) -- Rauma Marine Constructions of Finland is to receive a contract to design new naval vessels for Finland's Squadron 2020 project.
The award, worth about $7.9 million, was authorized to be issued by the Finnish Defense Forces' Logistics Command by Minister of Defense Jussi Niinistö.
The Ministry of Defense said the contract follows a Memorandum of Understanding last year. A contract to actually construct the vessels is scheduled to be signed in 2018.
The Finnish Navy's Squadron 2020 project is to replace seven Finnish Navy corvettes that have been, or will be, decommissioned.
The announcement from the Ministry of Defense gave no specifics as to exactly when the design contract is to be issued.