Kongsberg Gruppen (Kongsberg) signed an agreement today with the Armed Forces' Logistics Organisation for serial production of the new Naval Strike Missile (NSM). The contract is valued at NOK 2.746 billion, including the transition contract for MNOK 200.
NSM will be the main weapon deployed on Norway's Nansen Class frigates and Skjold Class missile torpedo boats.
"This is the largest contract Kongsberg has ever landed. Based on experience from the Penguin missile, the Norwegian Armed Forces have now laid the foundation for some 30 to 40 years of advanced industrial activity. This is a prime example of how the Armed Forces' needs can be combined with industrial initiatives, yielding significant added value and human resources development", remarks Chief Executive Officer Jan Erik Korssjøen.
"This contract is of the utmost importance for us", says Tom Gerhardsen, president of Kongsberg Defence & Aerospace. "The contract marks the conclusion of the 10-year development phase. Meanwhile, it will give us the references we need to sell the missile to other countries' naval defence forces. Several countries have already indicated an interest in the NSM", he adds.
The contract covers the production of NSMs for the Norwegian Navy's new Nansen Class frigates and Skjold Class missile torpedo boats. Production will run until 2014, and will ensure employment for 200 to 250 individuals in Kongsberg during those years.
Kongsberg Defence & Aerospace currently has total approx. 1400 Norwegian subcontractors, and nearly 120 of them will get assignments as a direct result of this contract. In addition to subcontractors in Buskerud County, the contract will generate considerable activity in Akershus and Oppland counties.