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Defence prime Kongsberg Defence & Aerospace has been engaged in a US$1 billion contract to deliver Naval Strike Missile to the US Navy and Marine Corps.
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The defence company, owned by Norway’s government, has signed a multi-year procurement contract with the US Navy for the delivery of Naval Strike Missile (NSM) to the Navy and Fleet Marine Force over a five-year period.
The fixed price contract awarded is valued at 10 billion kroner (US$1 billion). The contract includes options which, if exercised, would bring the cumulative value of this contract to about 12 billion kroner.
“This contract is the largest missile contract in Kongsberg’s history and an important milestone for us,” said Geir Håøy, president and CEO of Kongsberg.
“We are pleased the United States has selected Kongsberg as an industry partner and look forward to continued cooperation to support US defence capabilities and create value for important stakeholders in Norway and the US.”
NSM is the centrepiece of Navy’s Over-the-Horizon Weapons System Program and is being installed on littoral combat ships and Constellation Class frigates. Kongsberg is also delivering NSM to the US Marine Corps as a key component of its Navy Marine Expeditionary Ship Interdiction System Program.
“This contract is an example of the strong demand we see for our strike missiles across NATO and allied nations, which is why we, this year, have opened a new missile factory in Norway and announced two facilities in Australia and the US,” said Eirik Lie, president of Kongsberg Defence & Aerospace.
“The multi-year procurement contract vehicle provides Kongsberg and all our sub-suppliers stability into the entire supply chain and workforce.”
Kongsberg recently announced the building of a new missile factory in James City County, Virgina, in response to increasing demand for Joint Strike Missile and NSM.
