Saab has received orders from Sweden's military procurement agency related to the construction and production plans of next-generation submarines.

The orders, which include mid-life upgrades to two Gotland-class submarines, are for the period of 2014-2015 and carry a value of about $70.42 million.

Saab reports it has also signed a letter of intent with the Swedish Defense Materiel Administration for support, development, design and production of submarines and other underwater systems from next year until 2024.

The letter of intent, it said, includes the potential of orders that would be worth more than $1.6 billion.

Specifics of the orders were not disclosed.

"Saab has substantial experience within the naval domain as supplier to warships and submarines around the world," said Gunilla Fransson, head of Saab's Security and Defense Solutions business area.

"With today's (Monday's) orders and the letter of intent we take the next step towards becoming a full-service provider of submarines for Sweden. It strengthens our offer and our unique competence within systems integration"