Saab reports that its Swiss subsidiary is to produce explosive training artillery ammunition for an unidentified customer.

The ammunition order will be fulfilled by Saab Bofors Dynamics Switzerland, or SBDS. The order is worth about $13.86 million and the ammunition will be delivered this year and next.

"This order is an endorsement of Saab's world-class munitions facility in Switzerland, which provides products and services for business partners and armed forces around the world," said Gorgen Johansson, head of Saab's Dynamics business area.

"This order is completely in line with our strategy to strengthen and extend our range of services," added Stephan Kocher, head of Saab Bofors Dynamics Switzerland. "We have a well-proven track record of fulfilling a wide range of national and international service contracts within the field of munitions, the respective components and explosives."

Production of the training ammunition will involve converting live rounds into training rounds.