Di – which is the Danish confederation of industries – has written to the defence and industry ministers, demanding contractual guarantees of counter purchases if Denmark is to buy its next generation of fighter aircraft from Lockheed Martin.

Denmark is currently in the final stages of deciding who will win its DKK 20 – 30 billion order for fighters to replace its ageing F-16s; Lockheed Martin, Boeing or Saab – with Lockheed Martin currently favourite.

In its letter to the Defence Minister Søren Gade and Economy and Trade Minister Lene Espersen, DI is demanding that Lockheed Martin contractually agrees to ensure Danish industrial participation at a level that at least corresponds to the total purchase price.

Counter purchases
Under Danish law, agreements on arms purchases of this size must include counter purchases. Lockheed Martin and the U.S. administration, however, entered into a special agreement with Denmark which allowed the country to take part in the development of the F-35. But Danish industry, which had expected more jobs from the agreement, says the deal has not lived up to expectations.

”Developments have not lived up to our expectations. Norway has already chosen the F-35 and wants the agreement with Lockheed Martin changed so that counter purchases for the full purchase sum are guaranteed. We feel Denmark should do the same,” says Arms Industry Chairman Jan Falck Schmidt of Falck Schmidt Defence Systems.

Lockheed says no
Lockheed Martin’s CEO, however, rejects the demands saying that cooperation with Denmark will succeed if the Danes buy the F-35.

“If you look at the overall lifetime of the program, we have identified order potential for Denmark of some DKK 25 billion,” Latham says.

Asked why Lockheed Martin is unable to provide a written guarantee, Latham says he is not permitted to do so.

”The agreement between the United States and, among others, Denmark in connection with the F-35 project, does not permit direct counter purchase agreements. But we have done business with Denmark for 30 years and have always lived up to our obligations,” Latham says.