The Swedish Defence Materiel Administration has signed a contract with Saab worth $1.04 billion for two new-construction A26 submarines and midlife upgrades of two Gotland-class submarines, Holland and Gotland. With the contract now complete, construction is expected to begin in 2016, with the first unit entering service in 2022 and the second in 2024. Although only two units are under contract, a total of five may be procured by the Royal Swedish Navy to replace the two Sodermanland-class and three Gotland-class boats. The first two will replace the Sodermanland class with three additional units potentially being ordered by the mid-2020s to replace the three units of the Gotland class.
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