Kongsberg Secures Major Contract to Supply Naval Strike Missiles to US Navy and USMC Worth Up to NOK12 Billion
Kongsberg Defence & Aerospace (‘KONGSBERG’) has finalized a multi-year acquisition agreement with the US Navy for the supply of Naval Strike Missile (NSM) projectiles to the Navy and Fleet Marine Force throughout a five-year span. The fixed-price agreement awarded today is estimated at NOK 10 billion. This contract encompasses options that, if activated, would elevate the total value of this contract to approximately NOK 12 billion.
“This agreement represents the largest missile contract in KONGSBERG’s history and marks a significant achievement for us. We are delighted that the United States has chosen KONGSBERG as a collaboration partner and eagerly anticipate ongoing cooperation to enhance US defense capabilities and generate value for key stakeholders in both Norway and the US,” stated Geir Håøy, President and CEO of KONGSBERG.
NSM is the focal point of the Navy’s Over-the-Horizon Weapons System (OTH-WS) Program, and is currently being deployed on Littoral Combat Ships and CONSTELLATION-class Frigates. KONGSBERG is also supplying NSM to the US Marine Corps as a crucial element of its NMESIS (Navy Marine Expeditionary Ship Interdiction System) Program.
“This contract exemplifies the robust demand for our strike missiles across NATO and allied countries, which is why we have inaugurated a new missile manufacturing facility in Norway this year and unveiled two operations in Australia and the US. The multi-year procurement contract framework offers KONGSBERG and all our subsuppliers stability throughout the entire supply chain and workforce,” remarked Eirik Lie, President of Kongsberg Defence & Aerospace.
KONGSBERG recently disclosed plans for the establishment of a new missile production facility in James City County, Virginia, in response to the rising demand for JSM and NSM.
