Norway-based Kongsberg Gruppen has merged its two defence businesses to further strengthen its position in the defence market.

The company’s Protech and Defence divisions will operate under the new business area, Kongsberg Defence & Aerospace, from 1 October.

Kongsberg Defence Systems current president Eirik Lie will serve as president of the new division.

Commenting on the merger, Kongsberg president and CEO Geir Håøy said: “Our solid positions within defence have over time been confirmed, and we are facing considerable opportunities in the defence market, whilst at the same time experiencing increased competition.

“By merging our two defence areas we will ensure a more effective and coordinated utilisation of our joint resources, both in sales and marketing and within product development and production.

"By merging our two defence areas we will ensure a more effective and coordinated utilisation of our joint resources."

“A strong and well-coordinated sales and marketing function is key to win important programmes that will be driving the group’s value creation going forward.”

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In 2016, Kongsberg’s Protech Systems and Defence Systems had revenues of NOK2.1bn ($270.94m) and NOK4.3bn ($554.79m),  respectively.

As part of the merger, Kongsberg Protech Systems will be integrated as a division in line with the five existing divisions of Kongsberg Defence Systems.

Håøy added: “We continuously have to ensure an effective utilisation of our resources to ensure further growth and profitability. A joint defence business strengthens our position for the opportunities ahead of us.”

Image: Kongsberg Protech Systems is the global market leader for remote weapon stations. Photo: courtesy of Kongsberg Gruppen.