Terma enters into F-35 Long-Term Agreement with BAE Systems

The Danish defense group Terma has entered into a long-term agreement with BAE Systems with a value of more than USD 35 million, including follow-on options, for the manufacture of composite parts for the international F-35 Lightning II program. The agreement covers the Low Rate Initial Production phases (LRIP) 6-11.

The agreement covers the manufacture of Large Composite Skins for the Horizontal and Vertical Tail across all types of the F-35. 

Terma has been collaborating with BAE Systems on the F-35 program since 2006 when the two companies signed a Letter of Intent for future partnership. In 2009 BAE Systems and Terma entered a contract for the delivery of machined parts for the F-35. The partnership between Terma and BAE Systems has now been strengthened by the long-term agreement, which also positions Terma as a strong partner for BAE Systems and for the F-35 program as a whole.

Jens Maaløe, President & CEO, Terma, said: “This signing solidifies Terma’s position on the F-35 program and shows how collaboration can benefit Terma, BAE Systems, 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.”

Paul Burns, F-35 Global Procurement & Supply Chain Director for BAE Systems, commented: "We have a long standing relationship with Terma, and the Long Term Agreement we are signing today is testament to their continued performance in support of the F-35 program. The agreement is to manufacture high tolerance Carbon skins and details to support the Aft assembly build in BAE Systems, delivering to the exacting standards this global program demands."

Recently, Terma also entered into long term contracts with Lockheed Martin and Northrop Grumman Corporation for the manufacture of component parts for the F-35 Lightning II program.

“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 400 million.

Source: Terma A/S
Date: Jun 19, 2013