Poland has selected Swedish defense group Saab to participate in its next-generation submarine project worth billions of dollars designed to facilitate the country's efforts to bolster defense capabilities in the Baltic Sea following Russia's invasion of Ukraine.

South Korea's Hanwha Ocean was one of the companies that had submitted bids for the project. 

According to Reuters on Wednesday, Deputy Prime Minister and Minister of National Defense Wladyslaw Kosiniak-Kamysz announced the decision to sign a final contract by the second quarter 2026 and expected to receive the first of the three submarines by 2030.

The deputy prime minister said Sweden presented the best offer in terms of all criteria, delivery time, and operational capability, especially in the Baltic Sea.

The Polish official estimated the deal to be worth around ten billion zlotys, or two-point-74 billion U.S. dollars.

As part of a wider cooperation agreement, Sweden agreed to purchase Polish-manufactured armaments and to make an investment into facilitating the Polish shipyard's acquisition of submarine maintenance capability.

Hanwha Ocean, as well as defense manufacturers from Italy, Spain, France and Germany had made an offer in the project dubbed "Orka."