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Boeing and Terma Expand Strategic Alliance

02 June 2015

Boeing and Terma have signed significant contracts for work on Boeing commercial and defence products, continuing the long standing partnership with Denmark’s largest aerospace and defence company.

The new contracts are valued at more than $15 million (100 million DKK) which Boeing says demonstrates its commitment to Terma – initiated through a Memorandum of Agreement signed in March of 2009 – aimed at providing Terma a minimum of 30 percent of the industrial cooperation investments outlined in Boeing’s proposal to Denmark’s New Fighter Program.

For the first time, Terma says it will manufacture composite parts for one of Boeing’s commercial jetliners, the 777, an important break-through for the Danish company into the commercial aviation market. Terma will supply chords, shear ties and filler for empennage ribs for the 777. In service for more than 20 years, the 777 is the most commercially successful wide-body aircraft in commercial aviation history. Boeing forecasts that, over the next 20 years, airlines will need 8,600 new wide-body aeroplanes valued at $2.5 trillion. More than 17 percent of the demand will be generated by airlines in Europe.

Qualification for work on the 777 is expected to provide Terma with opportunities to bid on future work for other Boeing aeroplane programs including the 777X. Boeing will transition from production of the 777 to the 777X at the end of the decade.

Boeing also awarded Terma additional orders of the company’s Electronic Warfare Management System (EWMS) for Chinook helicopters, as well as Harpoon missile simulators. Terma’s EWMS for the Chinook features dual cockpit displays and integrates multiple warning and countermeasure systems to provide aircrews with unprecedented protection. Terma’s Harpoon missile simulator supports testing and training with Harpoon Command and Launch Systems based on land, as well as on ships and submarines.

“We have aggressively pursued win-win opportunities with Terma that extends beyond Boeing’s defence programs,” said Debbie Rub, Boeing Vice President and General Manager, Global Strike. “We are pursuing partnerships and investing across Danish industry to establish long term, trusted business relationships. This will allow us to incorporate the very best capabilities across the Boeing portfolio of products as we satisfy our global customer needs.”

“Terma’s experience within composites structures technology provides promising opportunities for collaboration and for introduction of Terma into the Boeing supply chain,” said Jens Maaløe, Terma President & CEO. “The 777 contract is strategically important to Terma in our effort to establishing the company as a supplier in the commercial aircraft segment.”

Integration of Danish companies into Boeing’s global supply chain is one of several areas Boeing is pursuing in support of long-term Danish industry growth. A recent study commissioned by Boeing and released by DAMVAD, a Danish economic consultancy, found that broad-based collaboration among Denmark’s defence industries and Boeing could create more than 10,000 jobs in Denmark and add 6 billion DKK to the country’s GDP over 20 years.





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