Kongsberg Plans to Build Low-Cost Missiles in Europe, CEO Says

Kongsberg Gruppen ASA, Norway’s biggest defense company, is holding talks with European governments to expand its production of low-cost missiles, Chief Executive Eirik Lie said.

The company recently bought a 90% stake in Zone 5 Technologies, a US producer of high-volume interceptors that defend against incoming barrages of missiles, and now plans to start producing those munitions in Europe, Lie said in an interview in Oslo.

Demand for affordable air-defense systems has surged during the conflict in Ukraine and the Middle East, with conventional fighter jets and Patriot batteries proving an overly expensive means of countering low-cost and evasive drones. Kongsberg is now speaking to several countries to determine which are best suited to build and assemble these missiles, Lie said, without elaborating on possible locations.

The company expects interceptors to be “a significant part of the business,” Lie said. Over time, it wants 100% of its suppliers for this business to be within Europe too, he added.

The Norwegian company has emerged as one of the biggest beneficiaries of a historic increase in military spending, with Russia’s war against Ukraine, hostilities in the Middle East, and a broader European rearmament drive fueling demand for its weapons.

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With annual revenue rising to about 33 billion kroner ($3.3 billion) in 2025, Kongsberg is looking to triple its revenue to 100 billion kroner in annual sales by 2029, Lie said. The company plans to hire 500 to 700 new employees annually over the next two to three years.