Saab has started construction of the Swedish Navy's next-generation conventional submarine, the A26.

The cutting of steel for the first A26 submarine's hull took place earlier this month at the Saab Kockums shipyard in Karlskrona, Saab said.

The A26 will be able to launch and retrieve mission payloads such as manned and unmanned vehicles through a multi-mission portal and will be equipped with missiles in addition to torpedoes and mines.

Sweden's Defense Materiel Organization ordered two of the submarines last June under a contract worth more than $900 million.

"We have left the design phase behind and begun construction of the A26, a pillar of Sweden's future naval defense," said Gunnar Wieslander, head of Saab Kockums. "The A26 is a new standard bearer; a step forward in the Swedish tradition of modular design and building, it ensures maximum operational effectiveness with a lower lifecycle cost."

The first A26 is scheduled to be delivered to the Swedish Navy in 2022.