Kongsberg, Thyssenkrupp Marine Systems and Atlas Elektronik have teamed to supply combat systems for Thyssenkrupp submarines.

A Norway-based joint venture company being formed follows a Norwegian government announcement last month that it had chosen Germany as strategic partner for new submarines, the companies announced at a press conference.

Kongsberg said the joint venture will be part-owned by both the Norwegian and German partners, and the new company will be responsible for the development, production and maintenance of combat systems.

"This is a historic milestone for our defense business and a great recognition of our expertise in naval systems," Kongsberg President and Chief Executive Officer Geir Haøy said at the teaming agreement ceremony. "The agreement has a potential of more than NOK 15 billion [nearly $1.8 billion] for Kongsberg in the next decades, and lays the foundation for significant activity and job creation for the Norwegian industry."

Thyssenkrupp Marine Systems is a leading manufacturer of conventional submarines, Kongsberg has significant experience delivering combat systems and Atlas Elektronik is a leading supplier of sonar systems, weapon control and other key components in submarine combat systems

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