Framework agreements with Lockheed Martin and Northrop Grumman
Today, Kongsberg Defence & Aerospace signed long-term framework agreements with Lockheed Martin and Northrop Grumman of the US to manufacture composite products for the new Joint Strike Fighter (JSF) fighter craft (F-35 Lightning II) being developed by the companies. The agreements were landed based on fully competitive prices, and completion of the agreements is conditional on Norway deciding to procure the JSF. Before arriving at their decision in 2008, the Norwegian Armed Forces will be considering the JSF as one of three alternatives to succeed the F-16.
The framework agreements have an initial scope of MNOK 1300 and MNOK 650, respectively. The agreements will extend for more than 8 years and require the construction of a new composite factory. Full-scale production will mean the scope can potentially increase to a total of NOK 6-8 billion.
The agreements are subject to the approval of the Board of Directors of Kongsberg Gruppen ASA and also predicated on the requirement that the Norwegian authorities furnish a guarantee related mainly to the political risk that Norway might opt for an alternative other than the American Joint Strike Fighter. KONGSBERG is in close dialogue with the Norwegian authorities on this issue.
"The agreements are a result of the excellent groundwork done by the Norwegian authorities to ensure an industrial agreement that will benefit Norwegian business and industry", states Tom Gerhardsen, president of Kongsberg Defence & Aerospace.