INTERVIEW: TORBJØRN SVENSGÅRD

THE ARMED FORCES AND INDUSTRY – STRATEGIC PARTNERS

For the 100 or so members of FSi, it is important to have good cooperation to ensure industry good insight into what the Armed Forces plans to procure. For the Armed Forces, it is important to utilise industry's expertise to procure the right materiel. Smooth cooperation is contingent upon a good dialogue. This will engender predictability, a prerequisite for investing in a market known for the fact that it takes many years from the time a project is implemented until a product is on the market. To maintain a viable defence industry, we need stable, long-term framework conditions which ensure strategic cooperation between the Armed Forces and industry.

How important will the purchase of Norwegian fighter craft be to the Norwegian defence and security industry?

This project will be the largest procurement ever made on Mainland Norway, so it is profoundly important. The procurement represents an enormous investment. It also offers a unique opportunity for continued growth and development in the defence industry. The fighter craft project is also a formidable challenge for the industry. The Armed Forces will be spending most of its investment funds on fighter craft for many years. Other procurements will be reduced correspondingly. This means a smaller domestic market that must be compensated by the industry taking part in the fighter craft project and related projects, e.g. through offset agreements. Should this fail, the situation could be very grave for the defence industry. Secondly, fighter craft technology is in the vanguard of development. The companies participating in the project will get a technological boost, improving their competitiveness. Thirdly, the fighter craft market is a rather exclusive one.

If you gain access to a 'fighter craft cluster' and become an integral part of the global supply chain, you have a unique strategic platform for growth and further development of strategic alliances. Such a unique strategic position and link to the major global players could give the companies invaluable support in terms of other markets and niches.