Cost of Kongsberg's JSM missile rises by 37 pct

OSLO Fri May 23, 2014 8:57am EDT

OSLO May 23 (Reuters) - The overall cost of Kongsberg Gruppen's Joint Strike Missile, designed for use in Lockheed Martin's F35 fighter jet, will rise to 8.2 billion Norwegian crowns ($1.38 billion) from a previous estimate of 6 billion, the Norwegian government said.

Kongsberg said most of the 37 percent cost overrun will be covered by the government.

"But Kongsberg will also invest more. We're completely confident that we will be able to sell this missile to other countries," Executive Vice President Harald Aanestad of the group's Defence Systems division told Reuters.

The company expects the product to be ready for use in 2017.

($1 = 5.9476 Norwegian Krones) (Reporting by Terje Solsvik; Editing by Balazs Koranyi)

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