Kongberg Wins F-35 Contracts – Maybe

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As Norway was saying that it will sign on to the F-35 Production Phase, Kongsberg Defence & Aerospace was signing “long-term framework agreements” with Lockheed Martin and Northrop Grumman to manufacture composite products for the aircraft. The Kongsberg release maintains that “the agreements were landed based on fully competitive prices,” but adds that “completion of the agreements is conditional on Norway deciding to procure the JSF.” There seems to be a conflict in those two statements, but we’ll let that pass. The framework agreements have an initial scope of NOK 1.3 billion and NOK 650 million, respectively (currently about $308 million combined). They will extend for more than 8 years, and require the construction of a new composite factory; full-scale production will mean the scope can potentially increase to a total of NOK 6-8 billion (currently around $930-1,240 million). Because of that investment requirement, the framework agreements are “also predicated on the requirement that the Norwegian authorities furnish a guarantee related mainly to the political risk that Norway might opt for an alternative other than the American Joint Strike Fighter. KONGSBERG is in close dialogue with the Norwegian authorities on this issue.” Norway is, after all, keeping its options open… […]

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