Saab and Dutch shipbuilder Damen Shipyards Group signed an exclusive teaming agreement to jointly pursue the potential Walrus-class submarine replacement program for the Netherlands, Saab said on Tuesday.

The companies also agreed to explore how they might bid jointly on other submarine procurement programs.

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Damen was established in 1875 and supplies about 160 vessels annually worldwide, it said. The company’s security and defense portfolio includes ships ranging from seven to over 200 meters in size.

“We are convinced that with Saab we have found the ideal partner to realize a successor to the present Walrus class; a vessel that will set a new standard for non-nuclear submarines. The complementarity of both our companies opens up the potential for a successful cooperation in more submarine programs worldwide”, Hein van Ameijden, managing director of Damen Schelde Naval Shipbuilding, said in a statement.

Gunilla Fransson, head of Saab business area Security and Defence Solutions, added, “Saab Kockums is looking forward to cooperating with the experienced shipbuilders at Damen Schelde Naval Shipbuilding. We have the full support of our Swedish customer in broadening our customer base to include a new demanding high-end customer.”