(Reuters) - Saab plans to build a new facility for weapon systems in the United States to boost munitions production capacity and strengthen its global supply chain, the Swedish defense equipment maker said on Tuesday.

The site will support the engineering and production of missile weapon systems for the U.S. military. This includes components for the Ground-Launched Small Diameter Bomb (GLSDB) system, along with close combat weapons.

The U.S. Department of Defense struck a deal with Saab in 2019 enabling the purchase of Saab's close combat solution, which includes AT4 anti-armour systems and Carl-Gustaf ammunition for up to $422 million.

Saab expects to finalize the location and break ground on the facility by this year, with production commencing in 2026.