Offset agreement for transport aircraft

The Royal Norwegian Ministry of Defence and Lockheed Martin have signed an offset agreement relating to the procurement of C-130 transport aircraft. The agreement covers offset purchases equivalent to the purchase price of four transport aircraft, of the order of NOK 3 billion, which was a precondition for the Storting’s decision in the spring to proceed with the fast track purchase of transport aircraft. In addition the contractor is committed to offset purchases for all items procured from Lockheed Martin in connection with the C-130 aircraft over the next 20 years, a so-called life-cycle agreement.

“It is very good news that we have now signed the offset agreement which covers both the contract sum for the transport aircraft and, in addition, subsequent contracts relating to the upgrading and maintenance of materiel etc,” says Defence Minister Anne-Grete Strøm-Erichsen. “This is in line with the Government’s policy to extend the use of offset as a strategic instrument for the benefit of Norwegian industry, as we indicated both in Soria Moria and in Report No. 38 to the Storting, “The Armed Forces and Industry – Strategic Partners”.