Northrop Grumman Corporation (NYSE:NOC) has entered a long-term agreement (LTA) with the advanced composites manufacturer Terma A/S in Denmark to manufacture component parts for the international F-35 Lightning II program. The LTA, which has a potential value of more than $97 million upon completion of all follow-on options, was signed on Sept. 20 and further emphasizes the company's commitment to supporting F-35 Lightning II partner countries.
The LTA covers production of 34 unique F-35 Lightning II composite components, including door, panel, skin assembly and straps through 2019. The LTA further strengthens the partnership between Northrop Grumman and Terma A/S, which began in 2006. The first purchase order placed in 2007 during the Low Rate Initial Production 1 statement of work solidified the collaborative relationship between Northrop Grumman and Terma A/S, which has manufacturing responsibility for hardware on all three F-35 aircraft variants.
The LTA signing has spurred discussions on how Northrop Grumman and Terma A/S can collaborate on affordability initiatives benefitting both companies 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 A/S as a premier supplier of composite parts.
"The LTA with Terma A/S further strengthens our relationship with Denmark, an F-35 partner country," said Michelle Scarpella, vice president of the F-35 program for Northrop Grumman. "Under this agreement, we will continue to work collaboratively with Terma, striving for the highest quality and driving efficiencies so we are able to provide the warfighter with the world's most advanced strike fighter aircraft."
As a principal member of the Lockheed Martin-led F-35 industry team, Northrop Grumman performs a significant share of the work required to develop and produce the aircraft. In addition to producing the F-35 center fuselage, Northrop Grumman designed and produces the aircraft's radar and other key avionics including electro-optical and communications subsystems; develops mission systems and mission-planning software; leads the team's development of pilot and maintenance training system courseware; and manages the team's use, support and maintenance of low-observable technologies. To date, the company has delivered every center fuselage on time and continues to meet its cost and schedule commitments. In 2011, the company delivered 22 center fuselages and is on track to deliver 32 center fuselages this year. It will make its 100th delivery in early 2013.
Source: Northrop Grumman Corporation (NYSE:NOC)
Date: Nov 7, 2012