Annual Report and Sustainability Report 2020

ABOUT KONGSBERG

Strengthened position for future growth

Kongsberg Defence & Aerospace

Kongsberg Defence & Aerospace (KDA) has built up a solid order backlog with a good horizon and is experiencing growth in most product areas. 2020 was characterised by a focus on delivery and the facilitation of long-term growth. KDA is a respected global technology leader and a leading supplier within defence, monitoring, space and aerostructures. The maintenance, repair and servicing of aircraft became a new focus area for KDA during 2020. We take great pride in developing advanced solutions and products of strategic importance for markets around the world, with applications spanning from deep sea to outer space.

"The past year has seen exceptionally high levels of activity"

Eirik Lie – President, Kongsberg Defence & Aerospace

In 2020, alongside its ordinary operations, the business area continued to work on integrating the space environment and the acquired business Kongsberg Aviation Maintenance Services (KAMS), formerly Aerospace Industrial Maintenance Norway (AIM Norway) AS, which is established at Bardufoss. From 1 January 2020, the Protech Systems and Defence Communications divisions were merged to form the Land Systems division.

Land Systems

Land Systems is a world-leading supplier of remote weapons stations, radios and radio communication. These weapons stations enable soldiers to operate from a protected position inside the vehicle. In 2020, the division marked the delivery of weapons station no. 20,000 with customers in 23 countries. In 2020, the U.S. Marine Corps chose the MCT-30 (Medium Caliber Turret), a 30 mm turret system based on the same technology as PROTECTOR RWS (Remote Weapon Station). Since the first station was produced in the early 2000s, the division has delivered stations with a value in excess of MNOK 40,000. The division’s radios are used in advanced tactical communication systems. The tactical communication solutions are used in more than 30 countries.

KDA signed a contract valued MNOK 1.030 with Thales UK Ltd. for delivery of the PROTECTOR RS4 Remote Weapon Stations (RWS) to the British Army.

Integrated Defence Systems

The Integrated Defence Systems division supplies the world’s most advanced air defence system in NASAMS (Norwegian-Advanced-Surface-to-Air-Missile-System), monitoring systems and artillery firepower, as well as land- and vessel-based combat systems. The division has a strategic cooperation agreement with Raytheon for NASAMS and with thyssenkrupp Marine Systems (tkMS) in kta naval systems SA, a joint venture company which supplies combat systems for tkMS’ submarines for the international market. NASAMS is the world’s best-selling air defence system in its class, with 15 countries using NASAMS elements in their defence systems. The division is also set to supply a mobile surface-to-air defence system to the Norwegian Armed Forces, along with the ICT solution for the Norwegian Armed Forces’ new artillery and upgraded tanks. At the end of 2020, Hungary signed its contract for NASAMS worth MEUR 410.

Space & Surveillance

The Space & Surveillance division supplies a broad spectrum of equipment, systems and services linked to space and maritime surveillance in more than 40 countries. The space portfolio includes equipment and components for launch vehicles and communication, navigation and earth observation satellites in addition to space probes for space exploration. Space & Surveillance works closely with customers such as the European Space Agency (ESA), NASA (National Aeronautics and Space Administration) and Rocket Lab, as well as major players such as Airbus, Thales and Raytheon. The division recently signed a contract for the delivery of market-leading signal processing equipment which will offer better mobile coverage in areas with little or no ground network.

KONGSBERG owns 50 per cent of Kongsberg Satellite Services (KSAT), a world-leading supplier of communication services for spacecraft and launch platforms and advanced monitoring services via satellites. KDA is through the ownership in KSAT, a world-leading supplier of ground stations for downloading and processing satellite data, as well as a service provider of satellite data from ground stations in Svalbard, Antarctica and many other locations. In 2020, the division signed its largest ever framework contract worth MNOK 405.

Kongsberg Satellite Services (KSAT) has the world’s largest ground station with approx. 100 antennas on Svalbard. 

Missile Systems

The Missile Systems division has over 50 years’ experience from a variety of missile programmes. Products include Penguin, the Naval Strike Missile (NSM) and the Joint Strike Missile (JSM) which is launched from surface ships, helicopters and fighter aircraft. KONGSBERG is the world’s only supplier of fifth generation long-range precision strike missiles with stealth capabilities. The U.S. Navy has chosen NSM for its OTH programme (Over-The-Horizon Weapon-System), and the U.S. Marine Corps recently chose NSM for a vehicle-based coastal defence system. During 2020, further JSM delivery contracts were signed with Japan, and NSM contracts for the USA. Demand and interest in NSM is increasing in the global market.

Aerostructures and maintenance

The Aerostructures division comprises a Centre of Excellence and offers deliveries of maintenance services through Kongsberg Aviation Maintenance Services (KAMS). Production concerns complex composite structures and metallic alloy assemblies and details. Its core capabilities range from design, prototyping and industrialisation, to mass production for aerospace and other high-performing markets. Activities range from the manufacture of parts for the F-35, missiles and helicopters, to mechanical production for the NASAMS air defence system, and the maintenance of dynamic components for helicopters. 2020 saw further growth in both production and maintenance services, and the Aerostructures division recorded a turnover of MNOK 2,100 in 2020.

Kongsberg Aviation Maintenance Services (KAMS) is part of the Aerostructures division. Through KAMS, KONGSBERG has taken a new strategic step into the maintenance market for aircraft and helicopters in the Nordic region and Northern Europe. KAMS is jointly owned by KDA, which owns 50.1 per cent, and Patria, which owns 49.9 per cent. KAMS has its main operational base in Kjeller, and the company opened the F-135 engine depot at Rygge in 2020. In 2020, KAMS acquired all shares in Patria Helicopters AS, and established KAMS’s operations at Bardufoss in order to support NH-90 helicopter maintenance. KAMS is a strategic partner of the Norwegian Armed Forces for the maintenance of air systems.

Patria

The Finnish company Patria is an international supplier of systems and services for defence, security and aviation. The company specialises in maintenance services and covers all defence aspects within MRO (Maintenance, Repair and Overhaul). Patria has approximately 3,000 employees and owns 50 per cent of the shares in Nammo. KONGSBERG holds 49.9 per cent of the shares in Patria.

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