Rewritten – November 2006

Map of Denmark

Over the next decade, Denmark will continue with its modest, far-reaching modernization program that will see its navy transformed from the former Cold War orientation to a multi-purpose force designed to accomplish a variety of peace support and patrol missions. The transition (based on the National Defense Act of 2001) began under the five-year Defense Agreement 2000 – 2004 and will continue under Defense Agreements 2005 – 2009 and 2010 – 2014. Although under relatively austere financial auspices, the Royal Danish Navy (RDN) will see its older ships replaced by a smaller number of ships built to support a wider range of missions, in accordance with Denmark's Standard Flex (STANFLEX) concept.

Programs such as the Absalon Class Support Ship (Flexible Support Ship), Minor Standard Craft Mk II patrol boats, and MHV 900 patrol craft programs started under Defense Agreement 2000 - 2004 and will be complete over the next several years. Defense Agreement 2005 – 2009 will see the start of the Patrol Ship (Frigate) program in which three units will be procured. In addition, new programs include the Arctic class Offshore Patrol Vessel (OPV) program, the Minor Standard Craft Mk1 program and a new Naval Home Guard patrol craft.

The most shocking decision of Defense Agreement 2005 – 2009 was the announcement to depart from the submarine business, retire the entire RDN’s submarine force by mid-2005 and cancel its participation in the Viking Submarine Program. In addition to decommissioning the submarine force, the RDN also decided to reduce its surface force by decommissioning a myriad of vessels including four Flyvefisken class Multi-Role Vessels (MRVs) (three decommissioned by the end of 2004), eight Barsoe class patrol craft, two Lindormen class coastal minelayers and one Falster class minelayer by 2008. In addition, the fleet will be consolidated into two operational squadrons and manning will be reduced by up to 2,000 personnel.

Following completion of the new construction programs (around 2012) as advertised under Defense Agreements 2000 – 2004 and 2005 –2009, there will more than likely be a lull in procurement activity. This will occur as the RDN will be relatively modern with the majority of the force being commissioned since the mid-1990s. Starting around 2019, the RDN will have to begin a new round of procurements in order to replace the Thetis class OPVs and the remaining Flyvefisken class MRVs.

Geographical Information:

Coastline: 7,314 km (4,534.7 miles)

Maritime Claims:

Contiguous Zone: 24nm

Continental Shelf: 200m depth, or to the depth of exploitation

Exclusive Economic Zone (EEZ): 200nm

Territorial Sea: 12nm

National Capital and Defense Headquarters: Copenhagen

Language: Danish, Faroese, Greenlandic (Inuit dialect), German (small minority)

Population: 5,413,000

Country’s legal name: Kingdom of Denmark

Type of Government: Constitutional Monarchy

Branches of Government:

Executive Branch: Chief of State: Queen Margrethe II (since 14 January 1972); Heir Apparent: Crown Prince Frederik (born 26 May 1968). Head of Government: Prime Minister Anders Fogh Rasmussen (since 27 November 2001). Cabinet: Appointed by the Prime Minister and approved by the Parliament.

Legislative Branch: Unicameral Parliament (Folketing) (consisting of 179 seats, including two from Greenland and two from the Faroe Islands; members are elected by popular vote on the basis of proportional representation to serve four-year terms).

Judicial Branch: The judicial branch consists of about 100 local courts, two high courts, several special courts (e.g., arbitration and maritime), and a Supreme Court. The 15 Supreme Court judges are appointed by the Monarch for life.

Currency: Danish Krone (DKK). Exchange rate based on 06 November 2006: 1 DKK=US$.17055

GDP Per Capita: $34,800

Economic Overview: The modern Danish economy features high-tech agriculture, up-to-date small-scale and corporate industry, extensive government welfare measures, comfortable living standards, and a high dependence on foreign trade. Denmark is self-sufficient in energy, and exports machinery, instruments, and food products. Denmark follows liberal trade and investment policies and encourages foreign investment. There are no restrictions on capital transfers and no foreign exchange restrictions. Worker productivity is high, inflation low, and corporate taxation one of the lowest in the European Union (EU), where as personal taxation is the highest. Almost two-thirds of Danish trade is with the EU. The US is Denmark’s largest non-European trading partner, accounting for close to 5% of total trade.

Denmark has enjoyed a reputation as "reluctant" Europeans insofar as many of the economic aspects of the EU are concerned. In 1993, Denmark agreed to participate in the EU, but only after the rest of the European Community (EC) agreed to exempt Denmark from certain aspects of the organization, including a common currency (the Euro). As the result of a general referendum in September 2000, Denmark decided not to participate in the third phase of the EU’s Economic and Monetary Union (EMU), starting on 01 January 2001 with the introduction of the Euro. However, Denmark adheres to the economic policies of the union, including meeting the convergence criteria for such participation.

Denmark remained neutral during World War I, and attempted to adopt the same posture during the Second World War. However, the country’s rapid occupation by Nazi Germany in 1940 persuaded most Danes that neutrality was no longer a reliable guarantee of Danish security. As a result, Danish foreign policy stresses collective security agreements based on four cornerstones: the United Nations (UN), the North Atlantic Treaty Organization (NATO), the European Union (EU), and Nordic cooperation. In the wake of the Cold War, Denmark has been active in international efforts to integrate the countries of Central and Eastern Europe into the West. The country is also a strong supporter of international peacekeeping. Danish forces have been heavily engaged in the former Yugoslavia (Bosnia and Kosovo) as well the Global War on Terrorism (Afghanistan).

Denmark has been a member of NATO since its founding in 1949, and membership in NATO remains highly popular – perhaps more so than in any other country in Europe. An overwhelming number of Danes favor Danish membership in NATO, and the Danes are also adamant that progress toward European integration should not come at the expense of transatlantic ties. Denmark has also increasingly emphasized cooperation with its three Nordic neighbors: Norway, Sweden, and Finland. Since late 1992, the Defense Ministers of Denmark, Sweden, Finland, and Norway have met several times to increase security ties, and to develop joint defense procurements and export initiatives.

US-Danish relations are excellent, and the two countries consult closely on European political and security matters. Denmark also shares the US view on the positive ramifications of NATO enlargement.

Ministry of Defense

Denmark’s international position and foreign policy are determined by its geographic location and its role as both a West European and a Nordic democracy. Danish defense policy was codified in the National Defense Act passed by the Danish Parliament in February 2001, and is supported by five-year defense plans known as Defense Agreements. National Defense Act 2001 addressed the aims of the Danish Armed Forces, which are considered an essential element of national security policy, and have three major roles:

Within the context of the current international security environment, Denmark faces no foreseeable conventional military threat to its sovereignty and, as a result, the Danish Armed Forces (DAF) have increasingly emphasized collective security, peacekeeping, and peacemaking operations. The 2001 Act emphasizes four main mission areas mandated by the UN or Organization for Security and Cooperation in Europe (OSCE):

Four missions are also emphasized for the DAF as an integral part of NATO:

Insofar as UN peacekeeping operations are concerned, Denmark has participated in such operations since 1948, and over 50,000 Danish soldiers have served with the UN. Although Denmark’s participation in UN operations is significant, Danish security policy is founded on its membership in NATO. Denmark attaches great importance to its NATO membership and to participation in the integrated NATO military command structure. Within the NATO command structure, the DAF are subordinated to Commander-in-Chief Allied Forces Northern Europe (CINCNORTH), and CINCNORTH’s two subordinate commands are Commander Joint Center Northeast (COMJNORTEAST) in Karup, Denmark (Army and Air Forces) and Commander Allied Naval Forces Northern Europe (COMNAVNORTH) in Northwood, Great Britian (Naval Forces).

Since the National Defense Act of 2001, the Danish Parliament has approved two supporting Defense Agreements, Defense Agreement 2000 - 2004 and 2005 - 2009. Defense Agreement 2000-2004 began the transition of the DAF from a Cold War orientation to a multi-purpose force in order to meet the objectives as outlined in the National Defense Act of 2001. Defense Agreement 2005 - 2009 continues with the transition and calls for a continued reduction and restructuring of the force as well as the procurement of new equipment to outfit the new force. Some of the highlights of Defense Agreement 2005 – 2009 include:

According to Denmark’s Constitution, the Monarch is the nominal Commander-in-Chief of the Danish Armed Forces (DAF). However, in accordance with the National Defense Act of 1993, the Minister of Defense is responsible to the Prime Minister and Parliament for Denmark’s defense. As such, the Minister of Defense establishes the size, composition, and organization of the Army, Navy, Air Force, and Home Guard. The Minister of Defense discharges his duties through a number of offices within the Ministry of Defense. The most important of the Minister of Defense’s assistants is the Chief of Defense, who is the senior uniformed officer in the DAF, and has command authority over the Army, Navy, Air Force, and Home Guard. The Chief of Defense is responsible to the Minister of Defense for the following functions:

The Chief of Defense reports directly to the Minister of Defense, advising the Minister on the state of affairs of the DAF and other matters that might be of interest. Additionally, the Chief of Defense is the Danish member of NATO’s Military Committee, and represents the DAF in international councils and at fora where Denmark will be represented by a military figure.

The Chief of Staff, Defense Command Denmark, is the Deputy Chief of Defense and is responsible to the Chief of Defense for the work performed by the Staff, Defense Command Denmark. The Staff is composed of six staff elements:

Additionally, the Staff has two independent offices, the Military Advisory Secretariat and the Information Branch.

In time of war or crises, operational command of the DAF is delegated to the Commander Operational Forces Denmark who is dual-hatted as Commander Baltic Approaches (COMBALTAP).

*Please note, these personalites may have changed since the writing of this report. For the most current information, please visit the Defense website at: http://www.denmark.dk/portal/page?_pageid=374,520640&_dad=portal&_schema=PORTAL

Mr. Soren Gade

Mr. Soren Gade

Minister of Defense

Ministry of Defense

Holmens Kanal 42

DK-1060 Copenhagen K

Denmark

Tel: + 45 33 923 320

Fax: + 45 33 320 655

E-mail: fmn@fmn.dk

General Hans Jesper Helsoe

General Hans Jesper Helsoe (since 01 August 2002)

Chief of Defense, Defense Command Denmark

Defense Command Headquarters

P.O. Box 202

DK-2950 Vedbaek

Denmark

Tel: + 45 45 674 567

Fax: + 45 42 890 748

E-mail: fko@mil.dk

 

 

Vice Admiral Tim Joergensen

Vice Admiral Tim Sloth Joergensen (since 01 August 2002)

Deputy Chief of Defence Denmark

Defense Command Headquarters

P.O. Box 202

DK-2950 Vedbaek

Denmark

Tel: + 45 45 674 567

Fax: + 45 42 890 748

E-mail: fko@mil.dk

Rear Admiral Nils Wang

Rear Admiral Nils Christian Wang

Admiral of the Danish Fleet

Admiral Danish Fleet Headquarters

P.O. Box 483 DK-8100, Arhus C

Denmark

Tel: + 45 89 433 099

Fax: + 45 89 433 131

E-mail: sok@sok.dk

Royal Danish Navy Material Command (Defense Acquisition)

Rear Admiral Kristen Winther

Rear Admiral Kristen Husted Winther (since 01 January 2004)

Royal Danish Naval Materiel Command

Danneskiold-Samsoes Alle 1

DK-1434 Copenhagen K

Denmark

Tel : + 45 32 663 266

Fax : + 45 32 663 299

E-mail : smk-ck@nmc.dk

Contract Department

Naval Materiel Command Denmark

Attn: Contract Department

Danneskiold-Samsoes Alle 1

DK-1434 Copenhagen K

Denmark

Tel : + 45 32 663 266

Fax : + 45 32 663 299

E-mail: ka@nmc.dk

Website: http://www.smk.svn.dk

Naval Team Denmark

Coordination Office
Axeltorv 6, 4th Floor
DK-1609 Copenhagen V
Denmark
Tel: +45 33 339 694
Fax: +45 33 339 654
E-mail: navalteam@navalteam.dk

Website: http://www.navalteam.dk

Western European Armaments Group (WEAG) Denmark

Defense Command Denmark

Material Division

P.O. Box 202

DK-2950 Vedbaek

Denmark

Tel: + 45 45 673 332

Fax: + 45 45 673 309

E-mail: fkomam@post6.tele.dk

The DAF consists of approximately 28,000 active duty personnel, including:

Approximately 60,000 Home Guard personnel support the active duty force, including:

In accordance with the Danish Defense Agreement 2005-2009 of June 2004, the DAF active force will be reduced from 28,000 personnel to around 20,000 by 2009. The Army will be reduced from 16,000 to 12,000; the Air Force from 5,500 to 3,500 and the RDN from 5,500 to 3,400.

Additional information on the Danish Ministry of Defense is available on the Internet at http://www.forsvaret.dk/fmn/ (Danish only). Information on the Danish Defense Command is available on the Internet at http://www.forsvaret.dk/FKO (Danish and English).

Material Command

Defense Command

The Royal Danish Navy (RDN) is organized into four command authorities:

Map of Naval Bases

Admiral Danish Fleet, headquartered in Aarhus, exercises command over the Danish fleet and the Navy’s operational shore establishment. The Danish fleet currently consists of around 70 ships and craft and is divided into four squadrons (Eskadre). By 2007, the Danish fleet will be reorganized into two Eskadres consisting of the following units:

- 1 Eskadre (based at Frederikshavn and Korsoer): Four Thetis class offshore patrol vessels (OPVs), one Agdlek class patrol boat, six Minor Standard Craft Mk II patrol boats, three icebreakers, two training vessels and one transport.

- 2 Eskadre (based at Frederikshavn and Korsoer): Three Patrol Ships (Frigates), Three Niels Juel class corvettes (phase out with commissioning of frigates), two Absalon Class Support Ships (Flexible Support Ship), ten Flyvefisken (STANFLEX 300) MRVs, two Harpoon mobile missile batteries, a mobile base facility, and a mobile logistic unit.

Naval Base at Frederikshavn

Naval Base at Korsoer

One Nacken class submarine, three Tumerlen class submarines (already decommissioned), four Flyvefisken class MRVs (three decommissioned in 2004), eight Barsoe class patrol craft, two Lindormen class coastal minelayers and one Falster class minelayer will be decommissioned through 2008. These decommissionings will negate the need for the 3rd and 5th Eskadres enabling the RDN to consolidate into the 1st and 2nd Eskadres based at Frederikshavn and Korsoer. The naval installations at Frederikshavn, Korsoer and Copenhagen are subordinate to the Naval Materiel Command (NMC), which is headquartered in Copenhagen.

The two naval districts (Bornholm, and Kattegat) are responsible for maritime surveillance and vessel traffic management within their boundaries. To accomplish this mission, each district has radar sites, undersea surveillance equipment, and coastal lookouts. Developing and maintaining this coastal surveillance picture also supports Danish search and rescue (SAR) operations (Admiral Danish Fleet is double-hatted as the Maritime SAR Coordination Center). The Admiral Danish Fleet is also responsible for training all RDN personnel.

The Royal Danish Naval Home Guard (RDNHG) consists of 31 craft and is officially part of the Danish Home Guard structure. However, when employed, units of the RDNHG are operationally assigned to the RDN in order to carry out maritime tasks.

Additional information on the RDN is available on the Internet at http://www.svn.dk and http://www.forsvaret.dk/sok. Additional information on the Royal Danish Naval Materiel Command is available at http://www.smk.svn.dk/.

The RDN currently consists of 70 ships and craft:

Three Agdlek class.

Nine Barso class.

• Two VTS class patrol craft.
• Ten dedicated mine warfare ships and craft:

Six SAV class minehunter drones (MRDs).

Four MSF Mk1 class MRDs.

• Approximately twenty-six auxiliary ships and miscellaneous craft.

The Royal Danish Naval Home Guard (RDNHG) consists of 31 craft:

Eighteen MHV class.

Four MHV 900 class plus two additional units under construction.

Six MHV 90 class.

With the construction of the Flyvefisken class in the late 1980s and 1990s, the RDN developed and introduced the Standard Flex (STANFLEX) Concept of warship design and construction. The STANFLEX Concept allows a suitably configured ship (a STANFLEX hull) to carry different mission payloads in separate mission-specific weapon/equipment container suites. The STANFLEX Concept provides the RDN with a great deal of operational flexibility. For example, depending upon its container loadout, a Flyvefisken (STANFLEX 300) class MRV can serve as a patrol boat, fast attack craft (FAC), minelayer, mine countermeasures vessel (MCMV), or a survey ship. To more fully explain the potential of the STANFLEX Concept, see the next section (Standard Flex Concept) of this report.

The Standard Flex (STANFLEX) Concept grew out of a major ship replacement problem the RDN identified in the early 1980s. Looking ahead to the 1990s, RDN planners realized that 22 small ships (six FACs, eight patrol boats, and eight MCMVs) would have to be phased out due to obsolescence and age. In developing their force level requirements, RDN planners determined that the Navy needed to maintain, as an absolute minimum, at least the same number of each ship type to accomplish national and NATO missions. However, long-term fiscal considerations clearly ruled out one-for-one replacement of the aging ships, particularly in view of the rising cost and sophistication of modern naval ships and systems. To solve the problem of satisfying multiple missions with a diminishing number of hulls, the RDN examined the idea of using a standard hull and propulsion plant designed to handle a variety of containerized equipment and weapon loads to suit various missions. Standard containers and interfaces would then allow ships to change-out its equipment suite to match different mission needs, ideally within only a few hours time. Sensors common to all missions, or those not suited for containerization (such as a hull-mounted sonar), would be part of the ship’s standard equipment suite. The whole premise was built on the need to achieve operational flexibility with a limited number of ship hulls. Eventually, the program came to be known as the Standard Flex (STANFLEX) Concept.

From the pre-feasibility study phase, the STANFLEX Project rapidly proceeded to a feasibility study that assessed the ability of a 300-ton STANFLEX ship design (the STANFLEX 300) to replace three existing ship types. By mid-1983 the basic-design of the STANFLEX 300, which later became the Flyvefisken class, had been established, and project definition and detailed design work continued until the autumn of 1984. On 27 July 1985, the Government of Denmark signed a construction contract with Danyard A/S of Aalborg, Denmark for the first batch of seven ships. The lead ship, Flyvefisken, was delivered in 1987 (commissioning took place in 1989) and series construction began in 1988. A second batch of six units was ordered on 14 June 1990, and the third batch, a single unit vice the three expected, was ordered in 1993. The Flyvefisken class procurement concluded with the commissioning of the 14^th unit, Seoloven, on 28 May 1996. With the procurement of the 14 Flyvefisken class MRVs, 22 older ships (representing three ship types) were retired.

Components of the STANFLEX concept have also been included in the Niels Juel class corvettes, which were modified to receive up to two of the NATO Sea Sparrow Mk 48 Mod 3 vertical launch system (VLS) containers for a total of 12 missile cells. This concept can also be found in the ongoing Flexible Support Ship (Large Standard Vessel) program, which has space for up to five container positions and will also be found in the Large Patrol Vessel (Frigate) program that will begin by 2007.

Each of the STANFLEX weapon/equipment container suites, manufactured in Denmark by Monberg & Thorsen, is 3m in length, 3.5m in width, and 2.5m in height. Containers are craned into wells in each ship, with standard interface connections providing access to ship’s services (power, communications, ventilation, water, and data). Installation of a single container is typically accomplished in about 30 minutes and, depending upon the weapon/equipment being installed, system checks are generally complete with a few hours. If one or more container positions are left unoccupied, purpose-made hatch covers are fitted to seal the wells.

The STANFLEX concept provides the RDN with a great deal of operational flexibility. For example, all STANFLEX capable ships can be fitted with any of twelve existing STANFLEX weapon/equipment container suites. With a combination of these weapon/equipment containers, each ship can be configured into any one of the following mission platforms: Surveillance, combat, minelaying (with twin mine rails aft for a load-out of up to 60 mines), MCM, ASW, environmental protection, hydrographic survey, and oceanographic research.

Currency conversions for 2000 through 2005 based on exchange rates for corresponding year. Currency exchange rates for 2006 through 2009 based on 2006 exchange rate of US$1=5.8600DKK.

Fiscal Year: Calendar Year

Danish defense budgets are generally arranged under five-year programs known as Defense Agreements. The current Defense Agreement covers the period 2005 through 2009. The focus of the current agreement, which is very similar to Defense Agreement 2000 – 2004, is to continue the shift from home defense based on mobilization to crisis management with an increased emphasis on reaction forces. The ability to participate in international operations continues to be strengthened, with mobility receiving priority. Defense Agreement 2000 – 2004 allocated US$1.5B for the procurement of new equipment. Defense Agreement 2005 – 2009 allocates US$2.4B for procurement purposes, a significant increase over the past Defense Agreement. The increase is due to projected savings that will occur over the next five years due to the reduction of the overall military structure, decommissioning of older military equipment and elimination of specific mission areas.

Danish Government procurement practices are generally transparent. Denmark is a signatory to the General Agreements on Tariffs and Trade (GATT)/World Trade Organization (WTO) Government Procurement Code and also adheres to European Union (EU) procurement regulations. Foreign firms are usually eligible to bid on an equal basis with Danish bidders for contracts valued over approximately US$200K. However, military procurements in Denmark must first fully consider Danish produced items. This aspect of bid evaluation encourages having a Danish firm as the Prime Contractor for defense programs.

There are no known restrictions on foreign competition for Danish defense procurements, with the notable exception of shipbuilding and associated systems, and some instances of low-complexity or low-value contracts, when Danish suppliers can meet the requirements. Danish procurements are normally open to international bidding. However, for defense items, it is the Danish Government’s policy to impose offset requirements for military contracts with foreign suppliers valued at over US$4.2M.

No pre-qualification is required to participate in Danish defense procurements, except for selected projects requiring a high degree of technical skill and quality assurance. In those cases, pre-qualification can be obtained by applying to any of the three military materiel commands (Army, Navy, and Air Force Materiel Commands).

A local agent is not required in order for a foreign firm to bid on Danish Government projects, but it is usually wise to employ one to establish service capability equivalent to that available from resident firms. Many Danish companies still prefer to deal with an established local agent or distributor, rather than buying directly from abroad. The Danish agent/distributor community has developed over centuries and is today a select and competitive group of businesses.

Licensing and joint venture arrangements are common in Denmark. Danish firms are fully familiar with both licensing foreign products for manufacture and sale in Denmark, and licensing their own products for sale abroad. Licensing agreements do not have to be registered with Danish authorities, and there are no Danish Government restrictions on remittance of royalties or fees. Joint ventures may be established as corporations, general partnerships, or in any other legal format. Danish law does not discriminate against joint ventures with foreign participation. The government of Denmark, through the Ministry of Industry, actively encourages foreign companies to manufacture high-technology products in Denmark.

Setting up a branch office in Denmark requires a relatively simple registration procedure with the Danish Trade and Companies Agency. The filing requirement is for general information on the parent company and the activities of its Danish branch (place of business, accounting periods, memorandum and articles, etc.). For tax purposes, branches of foreign companies are treated as incorporated companies. Danish business laws do not discriminate against foreign subsidiaries or foreign-owned companies. Denmark does apply ownership restrictions for businesses involved in arms productions. Specifically, foreigners may hold a maximum of 40% of equity and 20% of voting rights.

Announcements of public tenders are published in the "Supplement to the Official Journal of the European Communities." The text of the invitation to bid is in English, but tender documents are normally in Danish. For major projects, documents may also be available in English. Information concerning potential defense contract opportunities in Denmark is provided in the Danish Defence Procurement Bulletin. The Bulletin is published quarterly (February, May, August, and November) by the Chief of Defense, Denmark.

The primary players within the Danish procurement and acquisition process are the individual service materiel commands. The Danish Ministry of Defense has delegated most staff and management functions to the Defense Command. Within the Defense Command, the Deputy Chief of Staff for Materiel, Infrastructure, and Logistics is responsible for policy issues. Actual purchasing authority is delegated to the services. Accordingly, the Danish Naval Materiel Command (NMC) performs all procurements for the RDN.

Denmark uses both sealed-bid and negotiated procurement. Offerors should be prepared to have their original offer accepted without any discussions. Three principles are basic to Danish defense procurements:

The materiel commands have the right to reject quotations with explanation and choose the firm they believe will do the best job, regardless of bid ranking. Prospective contractors are not present at bid openings; however, the results are normally announced to all participants in writing or by telephone.

Both fixed-price and cost-plus contracts are employed, but the Ministry of Defense generally uses fixed-price contracts. Normal business terms and conditions apply to defense purchases. Since public funds are involved, however, conformance is monitored by the government auditing office. Contract terms and conditions may vary, depending on the value of the contract, issuing agency, sophistication, etc..

Payment policy calls for cash payment on delivery of contracted goods and services; however, exceptions to the normal practice are relatively common and bank guarantees are often required. Payment is normally made in the currency specified in the contract, 30 days net upon receipt of invoice and delivery of the equipment or service. Normally, a certificate of conformity signed by the supplier and quality control representative is required.

Denmark has never had a large defense industry (it currently ranks as the smallest of the four Nordic nations), and the decline of defense equipment associated with the end of the Cold War, did not have a major impact on Danish industry. In 1997, for example, the total Danish defense industry output totaled only US$166.6M, with US$103M in exports, and the defense industry employed only 1,300 people. Danish defense companies are generally small and look to find success as niche suppliers.

The one area in which Danish industry has primacy is in naval shipbuilding. Denmark requires that all contracts for new surface ships are awarded to Danish shipbuilders. Danish shipyards and manufacturers of naval defense equipment have formed an umbrella organization, Naval Team Denmark, which also includes, as associate members, a number of foreign suppliers to the RDN. Naval Team Denmark is an export organization working in cooperation with the RDN. Over the past decade, the organization has been marketing not only the STANFLEX concept, which in particular has proven successful in the Flyvefisken (STANFLEX 300) class, and the Thetis class, but also the systems and types of equipment that have been employed in these vessels. Cooperation between Naval Team Denmark and the RDN also promotes proper training and adequate logistics support. Members of Naval Team Denmark include Danyard Aalborg A/S, Terma Elektronik A/S, Maersk Data Defense A/S, MT Hoejgaard A/S, Desmi A/S, Logimatic A/S, Viking Life-Saving Equipment A/S, CUBIC-Tavleproduktion A/S, Lyngsoe Marine A/S, Reson A/S, HKM-Gruppen, Nordic Defense Industries A/S, and EIVA A/S, Force Technology, Systematic Software Engineering A/S, and Odense Steel Shipyard Ltd.

Other than its ships and some domestically produced systems (primarily Terma Elektronik produced radars, decoy launchers, and combat management systems, and Maersk Data Defense developed and manufactured integrated communication systems), the RDN relies primarily on traditional NATO suppliers and on equipment made by Sweden’s Saab. The OTO Melara 76mm/62 gun is found on most of the RDN’s surface ships, and many ships are configured to carry Boeing Harpoon surface-to-surface missiles (SSMs) and NATO Sea Sparrow surface-to-air missiles (SAMs). Denmark is one of four founding members of the NATO Sea Sparrow Consortium and is, with Australia, among the first to receive the Evolved Sea Sparrow Missile (ESSM). Radar suppliers include Terma, BAE Systems, Thales Naval Nederland, European Aeronautics and Defense Systems (EADS), Furuno Danmark, and Saab. The RDN’s electronic support measures (ESM) and electronic countermeasures (ECM) equipment is furnished entirely by Thales Airborne Sensors. Propulsion plant suppliers include MTU, General Electric (GE), and MAN/Burmeister & Wain.

In January 1999, in a deal worth an estimated US$26.2M, the Naval Materiel Command (NMC) ordered four torpedo launchers (two twin launchers) and an undisclosed number of MU 90 lightweight anti-submarine torpedoes from Eurotorp. These torpedoes will improve the ASW capability in the Flyvefisken (STANFLEX 300) class. The Eurotorp deal also included provisions for Danish industry involvement. Terma Elektronik, for example, performing the ship integration work, and other Danish companies have received contracts to manufacture components for the torpedo and the launcher sub systems.

Denmark does not face any imminent conventional military threat to its security, however, the primary task of the DAF is to defend Danish territory and adjacent areas in cooperation with NATO allies.

Additionally, in view of the world’s current security situation, the DAF needs to be prepared to engage in hostilities as part of a UN or NATO led collective security or peacekeeping operation.

To accomplish its wartime and peacetime missions, the RDN has assumed the following tasks in support of Danish national security:

The RDN and Royal Danish Naval Home Guard (RDNHG) currently operate around 101 ships and craft. Most are fairly modern vessels built since the 1970s. Since the end of the Cold War, the RDN has continued to modernize its force taking into account collective security and integrated UN and NATO peacekeeping operations. The RDNHG continues to modernize its force to support the RDN and it home defense missions.

The modernization of the RDN and RDNHG are in accordance with the National Defense Act of 2001 and two supporting Defense Agreements, Defense Agreement 2000 - 2004 and 2005 - 2009. Highlights from the most recent agreement, Defense Agreement 2005 – 2009, include the following:

The following programs new construction programs were authorized under Defense Agreement 2000 – 2004 or will begin (or continue) under Defense Agreement 2005 – 2009 and Defense Agreement 2010 – 2014:

Patrol Ship (Frigate): On 22 June 2006, The Danish Ministry of Defense (MOD) announced the approval of funding for the three-ship class of the Patrol Ship Program (frigate). A total of DKR4.7B (US$800M) was approved for the ship’s construction as well as most of the equipment. Construction of the first unit will commence in 2007, and will commission into the RDN by 2011.

Arctic Class Offshore Patrol Vessel (OPV): A construction contract for the two units was

Launching of the P570

awarded to Karstensens Skibsvaerft A/S on 20 December 2004. The first unit, P 570, was launched in 2006 and will be commissioned into the Royal Danish Navy (RDN) in 2007. The second unit, P 571, is under construction and will be launched in 2007 and commissioned into the RDN by 2008.

Minor Standard Craft Mk 2 (Patrol Boat): The Danish Five-Year Defense Agreement 2000-

Computer generated image of the MK 2 Patrol Boat

2004 authorized the construction of six Minor Standard Craft Mk 2 patrol boats. On 03 December 2004, the Danish Naval Materiel Command (NMC) signed a contract (approximately US$45M) with Faaborg Vaerft A/S for the construction of the six vessels. Faaborg as primary contractor, subcontracted the construction of the fiberglass hull, superstructures and propulsion package to Kockums of Sweden. Delivery of the first vessel will begin in January 2007 and the last unit will be delivered in April 2008.

Naval Home Guard MHV 900 Class Patrol Craft: The first four units of the class were commissioned into the Royal Danish Navy Home Guard (RDNHG) as of the end of 2005. The final two units began construction in 2005 and will be commissioned by the end of 2006.

Naval Home Guard Patrol Craft: Defense Agreement 2005 – 2009 released in June 2004 called for the procurement of five new patrol craft for the Royal Danish Navy Home Guard (RDNHG). Funding (DKK90M – US$14.6M) will be provided for five patrol craft to replace the MHV 90 class. A Request for Proposals (RfPs) can be expected by 2007 with a construction contract in 2008.

Absalon Class Support Ship (Flexible Support Ship): Both units of the class, L-16 Absalon

L-15 Absalon underway

and L-17 Esbern Snare, were constructed at the Odense Steel Shipyard in Denmark and have been accepted by the Royal Danish Navy (RDN). The first unit, Absalon, was launched on 25 February 2004 and accepted by the RDN on 19 October 2004. The second unit, Esbern Snare, was launched on 21 June 2004 and accepted by the RDN on 18 April 2005.

Minor Standard Craft Mk 1: The Danish Five-Year Defense Agreement 2000-2004 authorized the construction of ten minor craft, originally intended to be the Minor Standard Craft Mk 1 type. The program has since been changed to include six modified Standard Craft Mk 1, two tugs of an adapted commercial design, and a yet unspecified auxiliary craft for Naval Station Groennedal in Greenland. This report focuses on the Minor Standard Craft Mk 1, of which a construction contract award was signed with Danish Yacht A/S in mid-2005. The first two units of the class, were delivered in January and April 2006 The remaining four units are in various stages of construction and will be delivered by the end of 2008.

Following the completion of the above listed programs, there will be a lull in new construction through 2019 at which time the RDN will begin planning for the replacement of the Thetis class OPVs and the Flyvefisken class MRVs.

* FOC RfP is the First of Class Request for Proposal