Norwegian defence giant launches joint venture for NASAMS production in Ukraine

Kongsberg Defence & Aerospace, the Norwegian manufacturer of NASAMS air defence systems used in Ukraine, is expanding its presence in the country despite security risks. 

The company is establishing a joint venture in Ukraine to increase missile production, leveraging local technology and expertise, company President Eirik Lie told Euractiv in an interview, per Caliber.Az.

Kongsberg’s decision to set up operations in Ukraine marks a significant step in deepening cooperation with the country. “We are now establishing a company in Ukraine. We are in close discussion with industry in Ukraine to establish a joint venture,” Lie stated.

The primary focus will be on ramping up the mass production of missiles for the NASAMS air defence system. “We are talking about the mass production of missiles, meaning hundreds. We are looking at establishing the joint ventures within months,” he added.

While some defence companies have been hesitant to enter Ukraine due to security concerns and potential geopolitical ramifications, Kongsberg sees long-term strategic advantages in moving forward. “Security is very important. At Kongsberg, we want to utilise the strength of Ukraine’s industry. In the long term, when the war is over, Ukraine can be part of the supply chain providing missiles for air defence systems,” Lie explained.

Ukraine's defence industry is undergoing rapid innovation, and Kongsberg aims to be an integral part of this transformation. “A lot of innovation is taking place right now in Ukraine, and we will be part of that. It is important for us to be there,” Lie emphasized.

Kongsberg had already been increasing its production capabilities prior to the war in Ukraine. “We saw demand increase, especially for missiles and air defence systems before the Ukraine war, so we built capacity quite significantly,” Lie noted. The company has invested heavily in production facilities in Norway, the United States, and Australia.

“Our idea is to have multiple supply chains. Having regional production sites gives us resilient production capacity,” he explained, stressing the importance of diversification in supply chains.

The company is also preparing for potential disruptions in global trade, including new tariffs announced by the US. “No industry wants to have trade wars. Our response to that is de-risking by having a production facility in the US with local employees and a supply chain in the US, which will, sort of, counter that issue,” Lie said.

While the US facility provides a safeguard, Kongsberg is closely monitoring developments in Europe. “It would also depend on how much defence will be impacted. We need to follow the developments and try to mitigate that as much as we can,” he added.

One of the key challenges in the defence industry is securing critical components. “For instance, where we have one single source for supply or if everyone goes to the same supplier, we need stockpiles to increase our production capacity. That is the most important thing,” Lie noted. He also suggested the need for more regional suppliers to prevent bottlenecks.

While declining to disclose specific components used in NASAMS air defence systems, Lie emphasized the importance of securing priority access in the supply chain. “We do so by giving the suppliers visibility with contracts over several years,” he concluded.

As global defence spending rises and geopolitical tensions persist, Kongsberg’s strategic expansion in Ukraine and diversification of supply chains position it as a key player in the evolving security landscape.

By Tamilla Hasanova