Poland and Sweden on Monday signed a €4.2 billion ($4.8 billion) arms deal at a ceremony in the Polish seaport of Gdynia on the Baltic Sea.

In the deal, Poland's State Treasury Armaments Agency ordered the purchase of three new submarines from Swedish aerospace and defense contractor Saab.

A Monday press release from Saab outlined the sale, saying the company would begin delivering the vessels in 2030, with the final sub delivered in 2038.  

Companies from France, Germany, Italy, South Korea and Spain submitted bids for the contract.

Poland's Prime Minister Donald Tusk, who praised defense collaboration with Sweden, announced the deal on X, posting an image of himself and his Swedish counterpart Ulf Kristersson vigorously shaking hands at the ceremony.

"A strong Polish submarine force strengthens security in our shared Baltic Sea, and across NATO as a whole. When Sweden and Poland share the most advanced capabilities in the Baltic Sea, our part of the world becomes safer," wrote Prime Minister Kristersson.

What's in the Poland-Sweden submarine package?

Saab, one of the largest defense manufacturers in Europe, will supply three A26, or Blekinge-class vessels, as well as a weapons package, and training and maintenance packages.

Further, Saab said that it would open maintenance, repair and overhaul (MRO) facilities in Poland to support the deal. These facilities, said Saab, will be operated in collaboration with Polish companies to enhance Polish defense autonomy.

Saab said the new A26-class diesel-electric subs, which can remain underwater for days, are designed to meet the demands of the Baltic Sea and that they can operate in "complete silence and remain undetected," emphasizing their stealth "intelligence, surveillance and reconnaissance capabilities."

Saab CEO Micael Johansson said the vessels will strengthen the strategic partnership between NATO partner nations Sweden and Poland and that they "will play a pivotal role in enhancing security in the Baltic region."

Currently, Poland only has one submarine, an aging Russian vessel. To bridge the gap between now and 2030, Warsaw's navy will be given use of the Swedish submarine HMS Södermanland.

Europe's NATO member states have been frantically seeking to make up for lost time in bulking up their own defenses amid Russia's military aggression against Ukraine and growing doubts about US commitment to their security under President Donald Trump.

Edited by: Srinivas Mazumdaru

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