STRATEGIC DIRECTION

Relatively speaking, KONGSBERG is a small player in the international defence market, but the Group has carved out good market positions in certain niches. We have developed many competitive systems and products in collaboration with the Norwegian Armed Forces, international alliance partners and on our own.

The PROTECTOR Remote Weapon Station (RWS) has been in full-scale production since December 2001. KONGSBERG is currently the world's leading manufacturer and supplier of this type of weapon control systems. Over the past six years, the Group has supplied more than 2  000 systems to defence customers in 11 countries.

In autumn 2007, KONGSBERG signed a framework agreement directly with the US Army for weapon control systems for the CROWS (Common Remotely Operated Weapon Station) programme. The agreement has a framework of approx. NOK 8 billion and a duration of five years.

KONGSBERG's success in the USA has led to the establishment of a new subsidiary in Pennsylvania to manufacture new and overhaul used weapon control systems for the US market. Being a local supplier strengthens the Group's position as by far the leading supplier of remote controlled weapon control systems for armoured personnel carriers, and it virtually eliminates foreign currency risk, since revenues and expenditures are in the same currency.

In 1996, KONGSBERG and the Norwegian Navy concluded a contract for the development of a new Naval Strike Missile (NSM), one of Norway's most technologically advanced development projects.

In 2007, the Group was awarded a contract worth approx. NOK 2.5 billion for serial production of the missile. The contract covers the production of NSMs for the Norwegian Navy's new Nansen Class frigates and Skjold Class missile torpedo boats. Several countries have shown considerable interest in the NSM for use on various platforms (aircraft, helicopters, vehicles, etc.); this may open doors to new markets.

In that connection, KONGSBERG and Lockheed Martin have signed a joint marketing agreement for a new custom-made product for fighter craft, the Joint Strike Missile (JSM). The missile will be deployable on all three of the fighter craft contenders: the Joint Strike Fighter (JSF), the Eurofighter and JAS Gripen.