Kongsberg receives major order to supply Naval Strike Missiles to the U.S. Navy and the U.S. Marine Corps. $KOG (-0.13%)
Norwegian defense contractor Kongsberg Defence & Aerospace has signed a multi-year procurement contract to supply Naval Strike Missile (NSM) missiles to the U.S. Navy and Fleet Marine Force over a five-year period. The fixed-price contract awarded yesterday is worth NOK 10 billion (around 900 million US dollars), Kongsberg announced. The contract includes options that, if exercised, would increase the cumulative value of the contract to approximately NOK 12 billion, the statement added.
"This contract is the largest defense contract in Kongsberg's history and an important milestone for us," said Geir Håøy, President and CEO of Kongsberg.
The NSM missile is reportedly the centerpiece of the U.S. Navy's Over-the-Horizon Weapons System (OTH-WS) program and will be installed on Littoral Combat Ships and Constellation-class frigates. Kongsberg also supplies NSM to the U.S. Marine Corps as a key component of the Navy Marine Expeditionary Ship Interdiction System (NMESIS) program.
According to Eirik Lie, President of Kongsberg Defense & Aerospace, the multi-year procurement contract provides stability along the entire supply chain for the company and its subcontractors. In response to strong demand, Kongsberg recently announced the construction of a new factory in James City County, Virginia, to meet the growing demand for the Joint Strike Missile (JSM) and NSM. In addition, Kongsberg has opened a production line in Norway this year and announced the construction of a plant in Australia.
The NSM was developed by Kongsberg and first deployed by the Norwegian Navy in 2012. NSM is the main weapon of the Norwegian frigates and corvettes and has been selected by the U.S. Navy, the U.S. Marine Corps, Poland, Romania, Canada, Germany, Australia, Malaysia, Spain, the United Kingdom, the Netherlands, Belgium and Latvia, according to the manufacturer.
