Defence giant BAE Systems is to produce and deliver naval guns for the Royal Navy's Type 31 frigate programme.
The contract will see the company supply the Navy with a set of "advanced" and "multi-purpose" gun systems for the five ships.
It includes five Bofors 57 Mk3 medium calibre guns and 10 Bofors 40 Mk4 small calibre guns, BAE Systems said.
Both "close-in" weapon systems are designed to protect the ships against modern and future complex threats. The weapons can also use "cost-efficient" ammunition.
"We will be providing the most cutting-edge gun system technology available, which can adapt to different levels of conflict, including peacekeeping missions, local coastguard operations, and military operations," said Lena Gillström, managing director of BAE Systems Bofors.
"This contract increases the number of European nations deploying our advanced, flexible weapon systems," she added.
The weapons will be manufactured at a facility in Karlskoga, Sweden, and their delivery is expected to take place in 2023 and 2024, with the first Type 31 vessel expected to enter service in 2027.
The Bofors 57 Mk3 is currently installed on a number of warships across the world - used by eight countries including Germany, Canada and the US.
More than 100 Bofors 57 Mk3 have been built and delivered by BAE Systems so far.
Last year, defence company Babcock was awarded a £1.25bn deal to supply the Ministry of Defence (MOD) with its fleet of Type 31 frigates.
The Type 31 frigate programme is a step in the Government's plan to increase the number of warships in the Royal Navy over the next 20 years.
The ships will cost an average of £250m each and will be assembled at Babcock's Rosyth site in Scotland.
The vessels will be fitted with the Sea Ceptor missile system, a range of highly advanced weapon and sensor systems and a combat system with a 4D air and surface surveillance and target indication radar.
They will also have capabilities to operate with a Merlin or Wildcat helicopter.
Cover image: Bofors 57 Mk3 naval gun (Picture: BAE Systems).