Vard Group AS and Aas Mek Verksted AS have signed a letter of intent regarding a possible collaboration, primarily concerning the smaller vessels in the Norwegian Armed Forces’ procurement of standardized vessels.

Vard and Aas Mek Verksted , a leading Norwegian shipbuilcer with more than 100 years of maritime heritage, have signed a letter of intent setting out the overarching principles for a possible collaboration related to the Norwegian Armed Forces’ plans to build standardized vessels in Norway.

The Norwegian Armed Forces intend to procure up to 28 standardized vessels for the Royal Norwegian Navy and the Coast Guard, to be built in Norway. Approximately 18 of these are described as smaller vessels measuring between 50 and 70 meters in length.

-Vard Group has the capacity to build all 28 vessels at our seven shipyards, which can produce 15 ships per year. By collaborating with Aas Mek Verksted, we achieve an even more efficient and robust production model for the smaller vessels. The geographical proximity to Vard Langsten provides excellent conditions for sharing expertise, ensuring quality, and maintaining progress – for the benefit of the Armed Forces, says Vard Group CEO Cathrine Kristiseter Marti.

Aas Mek Verksted AS is a family-owned shipyard established in 1911. The yard has all the facilities necessary to contribute to the delivery: a covered slipway, a 145-meter floating dock with a capacity of 7,500 tonnes, workshops, and warehouse facilities. The company designs and builds new vessels and carries out conversions, repairs, and service assignments. Hull and steel production take place in cooperation with selected shipyards abroad. Aas Mek has demonstrated strong expertise, reliable deliveries, and solid financial results over several years, and is considered a strong partner for VARD in this project.

-Aas Mek Verksted AS sees this as an interesting opportunity to enter a new segment together with a reliable, experienced, local, and at the same time international partner. Through such a possible collaboration, we see potential to utilize our shipyard capacities even better. Among other things, we have a slip hall that would be well suited to the Armed Forces’ series of smaller vessels, says Øyvind Heggdal, CEO of Aas Mek Verksted.

VARD – a safe choice for the Armed Forces

As part of the Fincantieri Group, one of the world’s largest shipbuilders of high-complex vessels, also active in the defence sector, VARD has access to its expertise in this field and benefits from Fincantieri’s experience and financial strength, combined with the group’s overall focus on innovation and new technological solutions.

In addition, VARD has demonstrated execution capability as Norway’s only current shipbuilder with experience in constructing large military vessels. The group has a complete value chain from design and construction to maintenance and life-extension, ensuring a seamless transition between project phases, thereby reducing risk and ensuring predictability – both in terms of schedule and budget.

This gives the Armed Forces access to a Norwegian supplier with the capacity and expertise to deliver standardized vessels with high quality, predictability, and delivery precision. VARD has the organization, infrastructure, and processes required to carry out complex defense projects efficiently and in line with the Armed Forces’ requirements – from contract award to final vessel delivery.

VARD’s most recent deliveries to the Armed Forces were the three new coast guard vessels of the Jan Mayen class. The vessels were handed over to the Armed Forces in 2023(KV Jan Mayen, KV Bjørnøya) and 2024 (KV Hopen). In addition, VARD has delivered F/S Eger and F/S Marjata to the Intelligence Service, the coast guard vessel KV Harstad, and the Armed Forces’ only icebreaker, KV Svalbard.

-The new standardized vessels will be required to carry out a wide range of highly complex operations and tasks. VARD has invested significantly in expertise, equipment, and infrastructure in recent years. Our specialized yard for defense deliveries in Norway, Vard Langsten, has tailored its organization to defense requirements, and we have established robust routines for quality, safety, and delivery. We have competent teams and available capacity, and we work closely with Norwegian suppliers to ensure preparedness and delivery capability, says Marti.

Few shipyards – many Norwegian suppliers

VARD believes the best way to create value for the Armed Forces is to build several of the standardized vessels at the same shipyard, rather than distributing construction across many shipyards.

• Fewer shipyards provide significant efficiency gains and better transfer of expertise, while also making it easier to standardize the vessels.
• Fewer shipyards make it easier to ensure a commercially sound procurement process for equipment and services.
• It is easier to maintain the necessary infrastructure and build specialized expertise when production is concentrated. This is particularly important for maintenance and the service life of the defense fleet.
• It is time-consuming and cost-driving to adapt shipyards with the infrastructure and security required for building vessels for the Armed Forces.

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• Collaboration for the best solutions

  VARD is committed to close cooperation with stakeholders who share the ambition of finding the best solutions for the Armed Forces and for Norway. The development and construction of the Jan Mayen class demonstrate how Norwegian design and shipbuilding expertise can be combined to deliver vessels with high complexity, robustness, safety, and operational flexibility.

  Experience from building the Jan Mayen class shows that Norwegian deliveries accounted for up to 80 percent of the equipment on the three vessels. This strengthens both national preparedness and supply security and is an important contribution to a strong and independent maritime ecosystem in Norway.

  -VARD has full respect for, and a strong understanding of, the Armed Forces’ procurement and decision-making processes, and we will cooperate constructively with the actors the Armed Forces consider best suited. Our role is to be a credible and reliable shipbuilder, ensuring quality, progress, and predictability throughout the entire project, Marti concludes.