Protecting people and infrastructure

Increased security in uncertain times

"In the defence segment, KONGSBERG stands for protection, innovation and value creation," says Eirik Lie.

Interview with Eirik Lie, EVP KONGSBERG and President Kongsberg Defence & Aerospace. Article first published in Annual Report 2024.

Q: What is the most important contribution of Kongsberg Defence & Aerospace?

A: We provide equipment and technology that enable countries to protect people and infrastructure from external dangers and threats. We develop and deliver solutions to the Norwegian Armed Forces and Norway's allies that help enhance defence capabilities and ensure peace.

Our role as a defence supplier is linked to Norway's national security policy, and Norway's international obligations as a member of the UN and NATO. We work closely with the Armed Forces and research communities to develop customized systems for the country's specific needs, while also developing high-tech defence systems that are competitive internationally. The sale of defense equipment is subject to strict regulations. 

We also contribute to creating value in the local communities where we and our subcontractors are present. With nearly 2,300 suppliers, we work with large and small companies in a number of countries and throughout Norway. In Norway, we are an industrial powerhouse driving innovation and value creation throughout the value chain, a role we are very aware of and proud of. Together with them, we are increasing the pace of innovation to develop new solutions.

"The situation in Ukraine shows why we exist and that we can make a difference in a critical situation. We help save lives. NASAMS has shot down approximately 900 missiles and drones with an accuracy of 94 per cent."

Q: What is the biggest highlight of the year?

A: It is a bit difficult to call it highlights, when the backdrop is so serious. Last year was marked by security political unrest and war in Europe. At the same time, I am incredibly proud of the efforts that many of my colleagues made to secure deliveries of critical equipment to Ukraine last year. Donations from Norway and other NATO countries, including NASAMS air defence and anti-drone systems, helped protect people and infrastructure in Ukraine. We have also contributed to the completion of F-16 fighter jets and training of Ukrainian soldiers on our systems.

The situation in Ukraine shows why we exist, and the difference we can make in a critical situation.

We experienced a significant increase in new orders, which led to a record high order backlog at the end of the year. The high level of activity makes it extra important for us to expand production capacity with new facilities and more employees.

A highlight last year was definitely the opening of the new missile factory, Nexus, in Kongsberg, Norway. This is a state-of-the-art facility, which significantly increases our ability to deliver to our customers.

We employed 683 new people last year, a record high for us. We depend on attracting smart minds, and I am pleased that we could welcome so many talented people to us.

Q: What are the biggest opportunities ahead?

A: As the situation stands today, it is likely that NATO countries and Norway's allies will continue to invest in and strengthen their defence capabilities. We expect continued high demand for our core products such as air defence, missiles and weapon stations. International growth continues, and in 2025 we will begin building the new missile factories in Australia and the USA, which will give us a much stronger presence in these countries. In Norway, there is a lot of activity in connection with the fleet renewal in the Navy, with new frigates and standardized vessels, in addition to strong focus on air defence acquisitions.

The long-term plan for the defense sector was adopted by a unanimous Parliament in 2024. It includes a number of measures to increase the Armed Forces' combat power, availability, and endurance, with significant investments in areas such as maritime surface structure, air defense, land power, and the space domain.

At the same time, we are working purposefully to develop solutions that will meet long-term needs. The new supersonic missile 3SM is a development project together with German industry to bring forward a long-range missile that will complement the current NSM and JSM.

In air defence, we are working to expand NASAMS to cover an even wider range of ranges and threats, so-called Full Spectrum Air Defence. In the space segment, we see great potential in using microsatellites in a defence context.

Combining short-term needs with long-term strategic plans is part of everyday life for us at KONGSBERG, and I feel we are well positioned for the future.

Annual Report 2024: Protecting what matters

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