Saab reports it is to build two new submarines for the Swedish Navy and supply short-range air-defense missiles to an unidentified customer.

The total value of both contracts announced on Tuesday is more than $1 billion.

The first order, with a value of about $1.04 billion, is for construction of two Type A26 submarines and conducting mid-life upgrades to two Gotland-class submarines. Work on the two A26s is to be completed by 2024.

Type A26 submarines are nearly 207 feet in length, 21 feet in the beam and have an endurance of 45 days or 18 days underwater. They have a test depth of about 658 feet. They will be conventional diesel-electric submarines equipped with the Kockums Stirling AIP (air-independent propulsion) system for enhanced stealth.

The Gotland-class submarines will receive an overhaul and upgrade of their combat systems under the award. Saab said the order also includes platform modifications, system upgrades and testing.

The two vessels will be delivered to Sweden's Defense Materiel Organization in late 2018 and late 2019, respectively.

"Saab will deliver world-class submarines to Sweden," said Hakan Buskhe, president and chief executive officer of Saab. "Our ability to work closely with customers, to meet their needs with modern manufacturing and products, is one of Saab's greatest skills.

"Saab is also exploring export opportunities to provide complete submarine systems to a select number of countries, plus sub-systems across the wider market."

Added Gunilla Fransson, head of Saab's Security and Defense Solutions business area: "The A26 will be a unique and high-tech submarine with proven modular design, which gives the platform a high level of availability at a low life-cycle cost. The submarine will have long-endurance submerged performance and excellent maneuverability in all waters.

"Safety is paramount and A26 will be highly survivable thanks to modern underwater stealth technology and a unique heritage of shock resistant design."

The second contract for RBS 70 missiles is to be completed next year.

The RBS 70 is a short-range air-defense missile system deployed by 19 countries.

"One of our customers of the RBS 70 system has placed an additional order to achieve added capacity of its forces," said Gorgen Johansson, head of Saab's Dynamics business area. "This order demonstrates the reliability of the RBS 70 system, as well as the high quality of our manufacturing and support capabilities.

"The RBS 70 is a modern system with a long lifespan. An increasing number of customers are discovering its flexible design, which allows for the system to be continuously upgraded.

Saab would give no further details on the contract, which is covered by a confidentiality agreement.

The RBS 70 is a transportable missile system originally made by Bofors Defense, which is now part of Saab. Given the system's weight -- nearly 192 pounds -- it is operated by three persons, including one in a seat.