Kongsberg Signs $110 Million Defence Contract with Poland

Contract extension includes delivery of additional Naval Strike Missiles (NSM)
(Defpro ):  The Norwegian-based defence systems manufacturer Kongsberg yesterday announced that its Kongsberg Defence Systems business unit signed a contract for defence equipment with the Polish Ministry of Defence worth NOK 660 million ($110.47 million, €82.92 million). Kongsberg explained that the contract is currently pending approval of the related offset contract.

According to the company, the scope of products and services to be provided to the Polish Armed Forces includes the Naval Strike Missiles (NSM) anti-ship and land-attack missile as well as logistics equipment.

The recently signed contract is an extension of an earlier contract awarded by the Polish Ministry of Defence on 30 December 2008. Offering its Naval Strike Missile system, Kongsberg Defence & Aerospace (restructured as Kongsberg Defence Systems in January 2009) won an international competition for a coastal artillery system. According to press reports, the contract awarded in 2008 was worth NOK 800 million for 12 missiles and associated equipment. Kongsberg also offered an option for an additional 36 missiles.

Kongsberg did not confirm the exact number of missiles of the first and second contract. The latest order, however, has been awarded within the framework of the agreed option. Poland has been the first export customer for this missile system and the launch customer for the shore-based configuration of the NSM. Harald Ånnestad, Executive Vice President of the Defence Systems business unit, said in 2008: “This contract is a very important reference for the export of the NSM and it further improves our chances on the international market.”

The contract award for Kongsberg was contested by Saab, which had partnered with the Polish Bumar Group, offering the RBS15 Mk3 missile and Sea Giraffe AMB coastal radar system. Saab claimed that Kongsberg’s offer would not meet the Polish Navy’s requirements. Among other points of critique, Saab alleged that the NSM’s infra-red sensor was inferior to its radar-guided missile in foggy and humid conditions. However, Kongsberg provided the required certified documents which proved that its system is capable of meeting all required capabilities, such as maximum range and all-weather operation. Saab’s complaint was rejected by a Polish court in early 2009.

According to Kongsberg, the NSM is the only available fifth generation long range precision strike missile in the world. Further, the company explains: “The missile is completely passive, has proven its excellent sea skimming capabilities and with its advance terminal manoeuvres it will survive the enemy air defences. The Autonomous Target Recognition (ATR) of the seeker ensures that the correct target is detected, recognised and hit, at sea or on land.”

While the first missiles of this new system are being delivered to the Norwegian Navy, for integration with its Fridtjof Nansen-class frigates and Skjold-class patrol boats, the systems for Poland are currently being produced. Delivery is scheduled for late 2011 through late 2012. The land-based systems for the Polish coastal artillery will be integrated onto trucks built by Polish-based Jelcz SA.

Kongsberg and Lockheed Martin are currently developing a multi-role version of the NSM which is planned to be integrated with the F-35 Joint Strike Fighter. Being air-launched, the missile will have a greater range, estimated to reach 240 kilometres. The missile will receive significant modifications to fit into the aircraft’s internal weapons bay and will allow engaging ground targets in addition to naval targets.

By Nicolas von Kospoth