A memorandum of agreement (MOA) was signed today at the Defence & Security Equipment International exhibition in London between Denmark-based Terma Aerostructures A/S and BAE Systems (Operations) Ltd. Terma has been selected to continue to manufacture subassemblies, components and parts for the F-35 Lightning II empennage for a period which has the potential to run to 2038.

Terma has been selected to supply elements of the horizontal tails for all three F-35 variants, as well as vertical tail components for the F-35A – the conventional take-off and landing variant.

The MOA, which could potentially be worth up to US$250 million to Terma, reflects the F-35 Joint Program Office’s (JPO) overall current aircraft delivery schedule which extends for over 20 years.

Terma president and chief executive officer, Jens Maaløe, and Paul Burns, F-35 global procurement & supply chain director, for BAE Systems, were on hand for the ceremonial signing of the agreement that allows for continuation of existing opportunities for Terma to provide best value composite and bonded assembly work for the F-35.

"We are delighted to sign this agreement with Terma. We have been working together with Terma for over ten years and have developed a strong relationship which is delivering real benefits to both companies and the F-35 program," said Burns. "It is through agreements such as this, with organizations like Terma that will help BAE Systems meet our ‘Blueprint for Affordability’ commitments on the program."

"This MOA demonstrates the trust we have developed with BAE Systems. It is strong evidence of Terma’s present and future position on the F-35 program and it shows how collaboration can benefit Terma, Danish Industry and the F-35 program as a whole. Terma has established a solid and reliable technology base for our future involvement in the program. At present, Terma is preparing for further investment in technology and production facilities," said Maaløe.

In 2013, Terma entered into a long-term agreement with BAE Systems for the manufacture of Large Composite Skins for the Horizontal and Vertical Tail across all types of the F-35. Terma has also signed additional agreements for F-35 work with Lockheed Martin, Northrop Grumman Corporation, General Dynamics and Marvin Engineering.

Terma and BAE Systems have been collaborating on the F-35 program since 2006 when the two companies signed a Letter of Intent for future partnership. In 2009 BAE Systems and Terma entered a contract for the delivery of machined parts for the F-35.

Terma’s involvement in the F-35, since Denmark entered the program in 2002, comprises of eight different production programs within advanced composite structural parts and electronics.