Swedish defense and security group Saab said on Tuesday it had signed contracts with Sweden's military for two submarines worth 8.6 billion kronor ($1.04 billion). The order from the Swedish Defense Materiel Administration (FMV) covers the construction of two new Type-A26 submarines, as well as a mid-life upgrade for two Gotland-class submarines. Deliveries of the two new subs will take place in 2022 and 2024, Saab said in a statement. The upgraded subs will be delivered in late 2018 and late 2019. Saab said the A26 was a high-tech submarine with "long-endurance submerged performance and excellent maneuverability in all waters." It will be "highly survivable thanks to modern underwater stealth technology and a unique heritage of shock resistant design." The subs will be powered by conventional diesel-electric propulsion machinery and equipped with the Kockums Stirling Air-Independent Propulsion (AIP) system, making them difficult to detect. In April, the Swedish government announced plans to raise defense spending by 10.2 billion kronor for 2016-2020, mostly to modernize ships to detect and intercept submarines amid increasing Russian military activity in the Baltic Sea region. Sweden is a non-NATO country with a longstanding tradition of military non-alliance.