Industrial cooperation is a key element in Terma's business.
Terma is well positioned as a global player in the Space & Defense industry with an expanding international presence. Headquartered in Aarhus, Denmark, Terma has several subsidiaries and facilities across the world; in the U.S. (Terma North America), UAE, Singapore, India, the Netherlands, The UK, Belgium, France, and Germany, as well as a growing list of partnerships in our strategic markets.
The Industrial Cooperation and Partnerships (IC&P) department supports all Terma corporate functions, Business Areas and Regions and is organizationally anchored in Market Development. The IC&P department is mainly focused on maximizing the value and quality of Industrial Cooperation activities for our customers, government authorities and end users.
The IC&P department’s key tasks consist of providing the following:
- Industrial Cooperation and offset advisory
- A one-point-of-contact for external parties (government entities, customers, obligors, and beneficiaries)
- Industrial Cooperation business case development
- Industrial Cooperation proposal writing and claim and confirmation of IC credits
Industrial Cooperation is a prerequisite for maintaining and developing key competencies and capabilities for Terma, and for building a Danish industrial base that supports protecting Danish and European security interests. To this end, Terma enters into collaboration with foreign business partners to combine unique strengths for the mutual benefit of all parties involved.
Our approach to cooperation and partnerships always adhere to Terma’s Code of Conduct as well as our relevant internal policies, procedures, and training requirements. All employees responsible for these partnerships and offsets are trained within relevant procedures and policies, such as, but not limited to tailored anti-corruption training. Furthermore, the IC&P department monitors and oversees the existing ventures, while coordinating quality checks for any new business partners as part of Terma’s formal due diligence process. This is also done to ensure that every venture has a legitimate business case behind it. For the same reason, Terma does not employ any agents or brokers specifically linked to industrial cooperation projects. Read more about our work with anti-corruption and business ethics in the link below
Read more here.
Industrial Cooperation and Partnerships in our home markets (Denmark and the Netherlands)
Foreign vendors to the Danish and Dutch Defense are required to enter an Industrial Cooperation contract with the authorities in Denmark and The Netherlands.
Terma has a very long history and positive track record of participating in industrial collaborations and partnerships both at home and abroad. From experience, Terma has recognized that successful fulfillment of industrial cooperation obligations requires a responsive, competent, and resourceful local business partner or beneficiary.
Terma offers solutions for space, air, land, and sea. We have experience and expertise in the cross-functional areas of design, development, and manufacturing of software and hardware, system integration, installation, commissioning, and support. Terma's quality systems comply with international standards and have earned several individual approvals from leading companies.
Learn more about Terma's quality systems here.
As an IC partner/beneficiary in Denmark and the Netherlands, Terma can assist in overcoming the challenges that obligors are facing, including:
- Understanding the local IC rules and guidelines
- IC business case development
- Confirmation of IC credits towards government authorities.
Industrial Cooperation and Partnerships in our export markets
Terma supports customers all over the world while making sure to adhere to the applicable local legislation and requirements on industrial cooperation with local partners. To us, each partnership is unique and built on the capabilities, requirements, and strategic needs of the partner. To support Terma's growth strategy, teaming with customers, suppliers, and partners has become even more important in recent years.
As an obligor, Terma has years of experience in offering, executing, and completing industrial cooperation projects in different countries. We put strong emphasis on following the specific reporting requirements and have never had any penalty associated with offset obligations.
Below are some of our projects with local business partners that offer some insights into the details of our industrial collaborations and partnerships in our strategic focus markets:
In India, Terma has several successful partnerships, among others Tata Advanced System’s subsidiary Nova Integrated Systems (NISL) and Bharat Electronics Limited (BEL). Together with NISL, Terma delivers radar systems to the Indian Navy’s Surface Surveillance radar system under the “Buy and Make” initiative. Under a strategic Memorandum of Agreement, Terma and BEL collaborates on naval technology and aircraft self-protection. The two partnerships complement and strengthen the unique capabilities and competencies of all parties involved.
Read more about Terma and Tata subsidiary NISL.
Read more about Terma and BEL.
TATA-NOVA and Terma win Indian naval SSR program, February 2016
In Canada, our activities focus on local sourcing and R&D. Toronto-based Nanowave is a world-class designer and manufacturer of advanced electro-optic components and sub-systems which is why Terma chose them as a R&D partner. Terma currently provides the SCANTER 6002 radar system to Lockheed Martin Canada, who was selected by Irving Shipbuilding Inc. to provide its Combat Management System (CMS 330) for the Royal Canadian Navy’s new fleet of Arctic and Offshore Patrol Ships (AOPS).
The partnership has been highlighted as one of the success stories of Canada’s important Industrial and Regional Benefits Program (IRB). Recently Irving Shipbuilding published an article on how Terma is working with Nanowave as a R&D partner in connection with the AOPS program in Canada.
The article from Irving Shipyard is available here.
Read more about Terma’s partnership with Nanowave here.
Toronto-based Nanowave Technologies and Terma kicked off R&D cooperation for radar systems in December 2015
In 2007, the Dutch Ministry of Defense entered into a contract with Terma to equip their new Chinook (CH-47F) helicopters with an adapted version of the Terma Integrated Self-Protection Suite against Infrared and Radar threats. The self-protection system was for the first time successfully introduced to this new helicopter. The installation was performed in cooperation with Boeing.
In accordance with Dutch legislation, Terma entered into an offset agreement with the Dutch Ministry of Economic Affairs, Agriculture and Innovation (MEA&I) for the fulfillment of the offset obligation. The fulfillment was achieved with several Dutch partners, which performed a range of activities including sourcing, knowledge/technology transfer, joint development and other activities.
The Dutch partners are still fully integrated in Terma’s value chain today. Our sustainable footprint in the Netherlands was further strengthened in 2014, when Terma was obligated to perform industrial cooperation in relation to its delivery of aircraft survivability equipment on NH-90 helicopters.
Read more on Terma and Dutch NH-90 here
RNLAF (Royal Netherlands Air Force) - Terma’s industrial cooperation activities in the Netherlands (1994 and ongoing) focus on local engineering services and manufacturing for national programs and export sales.
In December 2006, Terma was awarded a contract by the Romanian Navy to deliver Terma's C-Flex Command and Control Systems for the Romanian Marasesti Frigate. In accordance with Romanian legislation, Terma entered an offset agreement with the Romanian Office for Offsetting Special Technique Procurements (OCATS) for the fulfilment of the offset obligation.
The main content of the Terma offset program included the two Romanian companies Navtron and Syscom 18, who both have a long-lasting track record with the Romanian Navy. The activities involved installation work, local support, software development and knowledge/technology transfer.
As part of the cooperation with the Romanian Navy, Terma has now implemented a new command and control system on the frigate, and a new shore-based training system that supports the crew in realistic training of naval command and control including the NATO link system. Not only was the offset obligation fulfilled ahead of schedule, Terma’s commitment also exceeded the obligation.
In Australia, Terma has a successful collaboration with Jenkins Engineering Defense Systems (JEDS) on activities within sales, installation, support and services. JEDS acts as a representative for Terma, in sustaining a wide array of our products and services for both naval and air, among others for the Royal Australian Navy (RAN).
Read more here.
Terma Vessel Traffic Services Radar at Port of Sydney