Poland and Sweden on Monday signed a €4.2 billion ($4.8 billion) arms deal at a ceremony in the Polish seaport of Gdynia on the Baltic Sea.

In the deal, Poland's State Treasury Armaments Agency ordered the purchase of three new submarines from Swedish aerospace and defense contractor Saab.

A Monday press release from Saab outlined the sale, saying the company would begin delivering the vessels in 2030, with the final sub delivered in 2038.

Companies from France, Germany, Italy, South Korea and Spain submitted bids for the contract.

Poland's Prime Minister Donald Tusk, who praised defense collaboration with Sweden, announced the deal on X, posting an image of himself and his Swedish counterpart Ulf Kristersson vigorously shaking hands at the ceremony.