Norwegian shipyards sign agreement ahead of 28-vessel tender

Norwegian shipbuilders Vard and Aas Mek Verksted have signed a letter of intent covering a potential collaboration tied to the Norwegian Armed Forces’ planned procurement of standardised vessels for the Royal Norwegian Navy and the Norwegian Coast Guard.

The programme includes up to 28 vessels to be built in Norway, with around 18 understood to be smaller ships measuring between 50 and 70 metres in length.

Vard said cooperation with Aas Mek could strengthen production capacity for the smaller vessels. The company operates seven shipyards and recently delivered the Jan Mayen-class coast guard vessels to Norwegian authorities between 2023 and 2024.

Aas Mek Verksted, a family-owned shipyard established in 1911, primarily builds vessels for the maritime and aquaculture sectors. The company said the agreement could provide an entry point into the defence market.

- By collaborating with Aas Mek Verksted, we achieve an even more efficient and robust production model for the smaller vessels, said Cathrine Kristiseter Marti, chief executive of Vard Group, in a press release.

- Through such a possible collaboration, we see potential to utilise our shipyard capacities even better, said Øyvind Heggdal, chief executive of Aas Mek Verksted, in the same release.

The agreement reflects growing activity across the Nordic defence and maritime sectors as governments increase defence spending and seek to strengthen domestic industrial capacity.

Shipyards and maritime suppliers across the region are increasingly positioning themselves for future defence-related contracts as Nordic governments seek to expand sovereign production capacity and reduce dependence on foreign suppliers.