Saab pushes deeper into Baltic undersea defence cooperation

Saab and PGZ Group have signed a strategic collaboration agreement to expand naval cooperation, with a particular focus on submarines, underwater systems and lifecycle support capabilities in Poland.

The agreement deepens defence-industrial ties between Sweden and Poland as Nato members around the Baltic Sea accelerate investment in maritime security and underwater capabilities.

- This agreement reflects a strong commitment to a deepening partnership between Polish and Swedish industry, while also contributing to enhanced security in the Baltic Sea and Nato’s eastern flank, Saab president and chief executive Micael Johansson said in a press release.

PGZ Group, or Polska Grupa Zbrojeniowa, is Poland’s largest state-owned defence company and a key supplier to the country’s armed forces.

According to Saab, the cooperation will include service and lifecycle support for both surface vessels and submarines, while integrating PGZ’s naval entities into Saab’s supply chain. 

The companies will also pursue selected export opportunities involving surface and underwater platforms, including rescue vessels.

Underwater tech centre

The agreement builds on earlier cooperation between the companies. Saab and PGZ signed a memorandum of understanding during the MSPO defence exhibition in Kielce in September 2025. 

In March 2026, the companies also agreed to explore cooperation on submarine maintenance, repair and overhaul activities linked to Poland’s Orka submarine programme.

One of the more tangible initiatives under the agreement is the planned establishment of an underwater technology centre in Poland. 

The companies will also jointly assess opportunities related to the production and marketing of Saab’s Autonomous Ocean Drone, an unmanned underwater platform designed for naval operations and surveillance missions.

In addition, Saab and PGZ will explore potential cooperation on a heavyweight torpedo programme. Heavyweight torpedoes are typically deployed by submarines and larger naval platforms for anti-ship and anti-submarine warfare.

The companies are also assessing broader cooperation in multi-domain defence systems and mortar ammunition production in Poland, according to the announcement.

Baltic Sea cooperation gains momentum

The agreement reflects a broader trend of expanding Nordic and Central European defence-industrial cooperation following Sweden’s accession to Nato and the heightened security focus across the Baltic region.

For Saab, the partnership could strengthen its industrial footprint in Poland, one of Europe’s fastest-growing defence markets. For PGZ, the cooperation offers access to Saab’s naval technologies and underwater systems expertise while supporting Poland’s ambition to expand domestic maintenance and production capacity.

The agreement also underlines how defence companies are increasingly using industrial partnerships and local support arrangements to position themselves for long-term European procurement programmes, particularly in the naval and underwater domains.