Norwegian Arms Manufacturer Lands Massive Contract With US Army
05:00 GMT 01.11.2022 (Updated: 05:27 GMT 01.11.2022)
Since the start of the Russian military operation in Ukraine and the West's huge arms flow to Kiev, shares in Kongsberg Group have soared by more than 30 percent as operating profits have reached record levels. In recent months, its order backlog also bulged to $5.4Bln.
Norway’s Kongsberg Group has entered a five-year contract with the US Army to deliver weapons systems worth NOK 15.5Bln (nearly $1.5Bln).
The contract is for Common Remotely Operated Weapon Stations (CROWS) - a series of remote weapon station used on armored vehicles and ships. It allows weapon operators to engage targets without leaving the protection of their vehicle.
“This is an important milestone and Kongsberg is proud to be chosen as a supplier to the US CROWS program for the next five years,” Kongsberg managing director Eirik Lie said in an announcement to the stock exchange. “We are continuing and expanding our cooperation with the US Army which dates back to 2007,” he added, pledging “the best available solutions”.
So far, Kongsberg Group has delivered more than 18,000 weapon station systems distributed across all the branches of the US Armed Forces, the company reported. Worldwide, more than 23,000 systems have been sold to 26 different nations.
Last week, Kongsberg presented its third-quarter results, where the operating profit reached a record of almost NOK 1.4Bln ($140Mln).
Since the start of the Ukraine conflict and the West's massive arms support to Kiev, shares in Kongsberg Group have climbed more than 30 percent on the Oslo Stock Exchange. Its products include the air defense system NASAMS which the US recently sent to Kiev. The air defense was developed by Kongsberg in collaboration with US-based Raytheon.
In recent months, Kongsberg’s order backlog has ballooned and is estimated at NOK 54.1Bln ($5.4Bln) in the third quarter.
Headquartered in the city of Kongsberg, the business not only supplies the military but also provides high-technology systems for the merchant navy, offshore oil and gas industries, and the renewable and utilities industries. It employs nearly 7,000 staff in more than 25 countries.
12 August 2022, 05:03 GMT
Despite its rather peaceful reputation, between 2015 and 2020 Norway ranked as the world’s 19th-largest arms exporter, according to the Stockholm International Peace Research Institute.
Moscow has repeatedly warned the US and its allies not to provide Kiev with arms, especially against the backdrop of the ongoing Russian special military operation in Ukraine, cautioning that the deliveries may further exacerbate the conflict. Among others, Russian Foreign Minister Sergei Lavrov stressed that any weapons shipped to or stationed in Ukraine would be considered “a legitimate target” by Russia's military.