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Terma Enters into F-35 Long-Term Contract with Lockheed Martin Corporation

  • Tuesday, 5th February 2013
  • Reading time: about 2 minutes

The Danish defence group Terma has entered into a long-term contract with Lockheed Martin Aeronautics (LMA) in the manufacturing of composite parts for the international F-35 Lightning II program.

The overall agreement has a value of more than USD 95 million including follow-on options. The contract covers the manufacture and assembly of the Horizontal Tail Leading Edges for all types of the F-35.The contract includes a sole source position for the life of the agreement (through 2019).

Terma has been collaborating with LMA since 1976 on the original F-16 program and since 2000 as a part of the F-35 program. Terma’s first contract for the Leading Edges was awarded during the System Design and Development phase in 2006. Their partnership has been strengthened by this agreement, which also positions Terma as a strong partner for LMA and for the F-35 program as a whole.

Jens Maaløe, President and CEO of Terma said, “The agreement signing solidifies Terma’s position on the F-35 program and shows how collaboration can benefit Terma, Lockheed Martin, and the F-35 program as a whole. The companies will explore technologies, set a path forward to achieve manufacturing efficiencies to meet rigorous quality requirements, and work toward establishing Terma as a premier supplier of composite parts.”

Recently, Terma also entered into a long term contract with Northrop Grumman Corporation for the manufacture of component parts also for the F-35 Lightning II program. The agreement, which has a value of more than USD 97 million upon completion of all follow-on options, was signed in September 2012 and further emphasises the company’s commitment to supporting the burgeoning relationship with Terma and Danish industry. The contract covers production of composite components, including door, panel, skin assembly, and straps through 2019 for all three aircraft variants.

“By entering these agreements, we have established the necessary solid and reliable base for our future investment in technology, production facilities, and human resources”, said Jens Maaløe.

Terma’s involvement in the F-35 Lightning II program since Denmark entered the program in 2002 comprises eight different production programs within advanced composite structural parts and electronics. To date, Terma’s aggregate order intake relative to the F-35 Lightning II program amounts to approx. USD 380 million.

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