The Norwegian Government decides to put forth the continued development of JSM
The Norwegian Government has decided to put forth the continued development phase II of the Joint Strike Missile (JSM) for the Parliament. For KONGSBERG this represents a continuation of the JSM development until 2013, should the Parliament approve it.
There is consensus between KONGSBERG and the Norwegian Defence Logistics Organization (NDLO) for a JSM phase II development contract worth MNOK 535. The contract will engage more than 100 employees at KONGSBERG. The JSM development started in 2008. A development contract worth MNOK 166 between KONGSBERG and NDLO was signed in 2009.
“The JSM development contract will contribute to secure KONGSBERG and several Norwegian Defence suppliers export related to the fighter program. This confirms that the missile technology developed by the Norwegian Defence, Norwegian Defence Research Establishment, KONGSBERG and its suppliers is competitive internationally and covers the operational requirements for Norway and other F-35 partner nations. JSM will be a technological joint effort that will lift a broader scope of Norwegian industry to a new level,” says Harald Aannestad, President of Kongsberg Defence Systems.
JSM could generate significant work for more than 100 Norwegian subcontractors for decades. Some of the Norwegian SME`s that will be involved in JSM are:
• ProPartner Defence AS • Kitron AS • Eidsvoll Electronics AS • Natech AS • Berget AS • Kongsberg Devotek AS
In a future situation with full-scale production, the JSM program will engage more than 450 employees at KONGSBERG.
The Joint Strike Missile is a new missile designed to fill an identified operational capability gap on the F-35. JSM is a high performance, long range, stand-off missile with land- and anti-ship capabilities. JSM is the only missile under development that can be internally carried on the F-35 meeting the operational requirements. The missile can also be integrated on other platforms.
KONGSBERG sees a large potential for future deliveries of the JSM to F-35 customers. Based on agreement between US Department of Defense (DoD) and Norwegian Ministry of Defence (MoD), KONGSBERG is invited to participate in a competition in the US Navy in their need for both ship- and aircraft based missiles.
“The JSM development and the F-35 integration is a confirmation of KONGSBERG’s leading position as a supplier of advanced missiles. This will create business opportunities for several decades. Based on the interest we have seen from the other F-35 partner nations, JSM supports KONGSBERG’s growth ambitions,” says Walter Qvam, President and CEO of KONGSBERG.
As part of the JSM development, new capabilities will be developed and tested and made available for upgrades of the Naval Strike Missile (NSM). The NSM is in production for Poland and Norway.
For further information, please contact: Harald Ånnestad President, Kongsberg Defence Systems Mob: +47 920 60 087
Pål Brattlie Executive Vice President, Kongsberg Defence Systems Mob: +47 930 57 243
KONGSBERG (OSE Ticker: KOG) is an international, knowledge-based group that supplies high-technology systems and solutions to customers engaged in the oil and gas industry, the merchant marine industry, and the defence and aerospace industries. In 2010, KONGSBERG had a turnover of NOK 15.5 billion, and the Group had 5 681 employees in more than 25 countries.
This information is subject to disclosure requirements pursuant to §5-12 of the Norwegian Securities Trading Act.