Annual Report 2012 13 - terma

The F-35 Joint Strike Fighter is one of our largest and most exciting
programs. Terma Aerostructures has been participating in the F-35 development
since 2004 to provide complex composite structures to the
program’s prime contractors as well as pods and pylons to Tier 1 companies.
Significant investments have been made at the Grenaa facilities to
upgrade manufacturing capabilities and infrastructure to meet the
demanding tolerances and sophisticated technologies of the Joint Strike
Fighter program.
In 2012, Terma Aerostructures entered into a major long-term contract with
Lockheed Martin Corporation for complex horizontal tail assemblies for all
three variants of the F-35 aircraft. A second major long-term contract was
entered into in 2012 to supply Northrop Grumman Corporation composite
skins and assemblies for the center fuselage, also for all variants of the F-35
aircraft. Depending on the total number of F-35 aircraft produced in the
Low Rate Initial Production (LRIP) phases 6-11 of the program, the order will
have an aggregate value of up to DKK 1 billion. These long-term contracts
provide a stable and more predictable business base and more secure
investment coverage.
Terma Aerostructures is now producing parts for the sixth phase of the
LRIP program, and a majority of these products have been fully qualified
and are flying on delivered aircraft. The production environment has
matured and has performed with very satisfactory performance; meeting
quality, delivery, and cost targets.
The Alternate Mission Equipment market segment is another key area for
Terma Aerostructures for which complex products and customized solutions
are designed, manufactured, and assembled. These products include pods for
electronic warfare and aircraft survivability equipment, reconnaissance pods,
data acquisition pods for flight testing, fuel pylons, and enhanced weapons
pylons. Terma Aerostructures’ in-house designed and manufactured Multi-
Mission Pod (MMP), developed for the F-35, was introduced at the
Farnborough Air Show and attracted great interest from visitors.
The Aerostructures Business Area’s journey from a model shop to a
world-class facility for design and manufacturing of advanced composite
structures has been successful. Affordability requirements and a lean
thinking philosophy are the cornerstones of the manufacturing model,
and every employee is committed to delivering the promise.
Terma North
America Inc.
Steve Gress Jr.
President & CEO
Terma North America Inc., the U.S. subsidiary, is well established as the
interface to U.S. customers for all Terma Business Areas. Terma North America
Inc. (TNA) facilitates the growth of Terma’s business in the U.S. through a local
presence near important customers and partners. With the headquarters in
the Washington D.C. suburb of Arlington (VA), TNA leads the interface with
senior executives in the Department of Defense, the Department of State, the
Danish Embassy, the Federal Aviation Administration (FAA), the Department of
Homeland Security, as well as the defense industry’s prime contractors and
other companies relevant to our business.
A major business development and operations facility is located in Warner
Robins, Georgia, and maintains business with the U.S. Air Force providing
electronic warfare systems, including maintenance, procurement, and
foreign military sales. Other TNA facilities are located in Fort Worth,
Texas, in close proximity to Lockheed Martin Corporation F-35 and F-16
program headquarters, and in Portsmouth, Virginia, near the U.S. Coast
Guard headquarters. An engineering presence is located in Huntsville,
Alabama, to support expansion of opportunities with the Missile Defense
Agency and infrastructure protection.
All Business Areas have experienced significant success in the past year,
exceeding the annual business plan for U.S. business and resulting in an
increased business backlog and revenue.
Terma Defense & Security in Warner Robins successfully expanded its
traditional customer base by continuing an in-depth study of helicopter
airborne survivability equipment. The relationships with The Boeing
Company and Lockheed Martin Corporation were strengthened to secure
follow-on business in the CH-47 Chinook Helicopter and C-130J Military
Transport Aircraft programs. The Group also established a position as the
baseline EW system for the Air Force Combat Rescue Helicopter program
and in Foreign Military Sales programs.
The Aerostructures Business Area is strongly represented at the Fort
Worth facility with a staff of highly trained professionals.
The Land and Naval Business Lines continued servicing North American-based
radar customers, including Canada, the U.S. Coast Guard, the U.S. Navy, the
FAA, and the Department of Homeland Security. Completion of the SCANTER
6002 radar system installation on an experimental U.S. Navy ship was a
significant milestone. This ship is used to demonstrate technologies of
important interest to the U.S. Navy. The Group also conducted a test with the
Department of Energy that demonstrated the capability of the SCANTER 4000
series radar to reduce the effects of the Windfarm Interference Patterns.
16 Business Areas and International Offices