Swedish defense company Saab is to continue development of a shallow-water lightweight torpedo for the Swedish Navy.

The work from the Swedish Defense Materiel Administration is worth about $20.7 million and includes has maintenance agreements for the Hydra sonar system and other underwater systems.

Saab said the orders come under a letter of intent it signed with the organization to support the Swedish Armed Forces' underwater capabilities through 2024.

"The new lightweight torpedo order represents another important step in developing a new generation underwater weapon, in collaboration with FMV and the Swedish Navy," said Gorgen Johansson, head of Saab's Dynamics business area. "Based on the proven Torpedo 45 with its outstanding shallow-water anti-submarine warfare capability, the new lightweight torpedo will deliver significant performance improvements to deal with evolving threats in international scenarios."

The contracts for maintenance of underwater systems and the Hydra sonar system are for support of their operational systems, Saab said, but additional details were not disclosed.

"Saab has been responsible for the maintenance of the Swedish Navy's underwater weapons for many years. We are pleased to announce that we have now expanded this responsibility to include the Hydra sonar system," said Agneta Kammeby, the head of Dynamics' Underwater Systems business.