How Terma and Kongsberg plan to reshape Nordic MRO: We are ready to invest

Few formalities remain before a new Nordic defence partnership is established and multimillion-kroner investments can begin.

As previously reported, Denmark’s Terma and Norway’s Kongsberg Aviation Maintenance Services - partly owned by Finland’s Patria - are working to establish a new company focused on maintenance, repair and overhaul (MRO) services for military airborne platforms supporting Denmark, and over time perhaps other Nordic air forces.

- We bring extensive experience and saw an opportunity to take greater responsibility within MRO together with Kongsberg, says Oscar Cosman Brøndum, vice president for business development, partnerships and industrial cooperation at Terma.

Brøndum leads teams working across Terma’s business areas, where projects often sit at the intersection of the company’s traditional divisions.

- This project is a good example of how industry supports increased security of supply as well as the political ambition for closer Nordic defense cooperation, says Brøndum.

Gained momentum

The joint venture has been under development for some time and the idea gained momentum following the Covid-19 pandemic and Denmark’s growing focus on defence-industrial resilience.

- The aim has been to strengthen resilience in Denmark and across the Nordic region, explains Brøndum.

In 2024, Terma A/S and Kongsberg Aviation Maintenance Services AS (KAMS) signed an initial teaming agreement reflecting plans to cooperate on military aviation maintenance in Denmark.

In March this year, the two companies applied to the Danish Competition and Consumer Authority for approval of the joint venture, which was granted in April.

- We bring considerable MRO experience and saw an opportunity to assume additional responsibility for airborne platforms, Brøndum says, referring to Terma’s experience with component-level MRO programmes.

A broader shift

The Danish Defence’s broader shift towards outsourcing maintenance of major systems to industry appears increasingly embedded in senior leadership thinking.

During a presentation on 7 May, Denmark’s director of national armaments, Kim Jesper Jørgensen, highlighted the joint venture while DALO recently launched a request for information regarding MRO support for the MQ-9 SeaGuardian.

In Norway, KAMS has extensive experience supporting both new and legacy systems, ranging from the F-35, P-8 and F-16 to helicopters, engines, logistics and training services.

Terma, meanwhile, brings long-standing experience supporting the Danish armed forces after several decades as a key industrial contractor.

- We will combine Terma’s established position in Denmark with the practical MRO experience KAMS brings from Norway. By joining forces, we can shorten the process and relatively quickly provide support to the armed forces, says Oscar Cosman Brøndum

He argues that traditional MRO arrangements - split between in-house military maintenance and fragmented industrial solutions - are no longer sufficient.

That model worked during peacetime, but lessons from Ukraine have shown that greater stability and resilience are required during conflict.

Although the joint venture has secured competition approval, Terma and KAMS are still awaiting approval from Denmark’s Ministry of Justice. This is expected to land soon.

Once granted, the companies plan to formally establish the business under the name "Defence Aviation Services" and begin recruiting leadership and specialist personnel while preparing physical investments, despite not yet holding any contracts.

- From our perspective, we are prepared to engage at whatever level is needed, he says.

Double-digit

The scale of investments will depend on future contracts.

Initial analysis has examined options ranging from utilising existing infrastructure at current defence sites to constructing new and dedicated MRO facilities.

- The investment level will depend on the projects involved, Brøndum said, adding that the companies expect investments to reach a double-digit million-kroner figure.

One possible route could involve offset requirements linked to Denmark’s procurement of new airborne systems.

In 2025, for example, Terma signed a memorandum of understanding with Boeing to explore cooperation on MRO support for the P-8 maritime patrol aircraft in Denmark.

- We see opportunities for bilateral cooperation between Denmark and Norway, as well as broader Nordic cooperation, Brøndum said, citing the C-130, Seahawk helicopters and F-35 as examples of shared platforms.

- We launched this project without holding any defence contracts. In that sense, it demonstrates how industry itself can help drive capability development. We are highly committed and see significant opportunities ahead, says Oscar Cosman Brøndum.