KONGSBERG signs two agreements with Norwegian Defence Logistics Organisation

18 December 2019 – The first agreement is a framework agreement for follow on technical support of systems that KONGSBERG has delivered to the Norwegian Armed Forces. The signing parties are Kongsberg Defence & Aerospace and NDLO.

KONGSBERG will support the Norwegian Armed Forces with maintenance and engineering services on equipment on board the Navy’s vessels. This includes the breadth of the company’s portfolio, from missile systems and weapon stations to command / control and navigation systems. The agreement continues and expands KONGSBERG’s previously signed framework agreement with the Norwegian Armed Forces, and the annual minimum scope is NOK 71 million for the first years.

The second agreement was signed between Kongsberg Aviation Maintenance Services and NDLO and is related to maintenance and support of the Norwegian NH-90 helicopter fleet. The agreement will initially apply for the years 2020-2026, and there will be annual calls from the agreement. The estimated value is about NOK 400 million distributed over the first four years, subject to it being renegotiated after two years.

Maintenance will mainly be carried out at the Bardufoss main base. This means that existing expertise on helicopter maintenance will be utilized, both from KONGSBERG and Finnish Patria. The latter already supports the Norwegian Armed Forces in the maintenance of NH-90 helicopters in Bardufoss today. In addition, KONGSBERG recognise the need to further strengthen the business with new hires.

It is a clear ambition to gradually increase the operational availability of the NH-90 helicopters in the years to come.

 “The contracts with KONGSBERG provide us with increased maintenance and engineering capacity and this contributes to enhanced readiness. The ambition is to increase technical availability on sea and air systems and we are confident that these long-term contacts will contribute in this regard. At the same time, the Norwegian defence industry becomes stronger, which is also important for the Norwegian Armed Forces, says Petter Jansen, Chief Executive at the Norwegian Defence Logistics Organisation.

“Both agreements are the result of a long-term commitment to maintenance and preparedness by both the Norwegian Armed Forces and KONGSBERG, and they lay grounds for further development of expertise in the area,” says Eirik Lie, CEO of Kongsberg Defense & Aerospace.

“For us, the support agreement for sea systems is an important building block for a long-term commitment for us to develop, in collaboration with the Norwegian Armed Forces. Going forward, this will also contribute to strengthening our activity at Haakonsvern, where we see a significant potential for growth in maintenance, repair and overhaul of such systems.

Lie is also very positive to the possibility of increased activity in Bardufoss related to the maintenance agreement for the NH-90 helicopter.

“KONGSBERG will, through this agreement, and together with Patria, strengthen our presence in Indre Troms. The agreement continues the intention of strategic cooperation and will, over time, contribute to increased operational availability for the Armed Forces,” says Lie.

Photo courtesy Mats Grimsæth / The Norwegian Armed Forces