Kitron has been selected by Northrop Grumman Corporation (NYSE: NOC) as an international source for manufacturing of a sub-assembly for the F-35 Joint Strike Fighter.

The potential value for Kitron is more than NOK 1 billion ($116 million) over the lifetime of the agreement, which runs until 2036.

The sub-assembly, called the Dual Channel Transmit/Receive (DCTR) module, is part of the CNI (Communications, Navigation and Identification) system developed by Northrop Grumman. It was won by Kitron in a best value competition.

The contract covers the initial steps of transferring technical knowhow and manufacturing prototypes for testing and validation. This process will be on-going through 2017. Kitron will then be awarded production contracts with deliveries starting in 2018.

"The F-35 program is crucial for Norway, adding significant defense capabilities and important for Kitron and the region since the long-term program secures substantial employment. Winning this type of contract reflects Kitron's position as a competitive and trusted partner," said Hans Petter Thomassen, Managing Director of Kitron Norway.

In September 2015 Kitron announced a separate agreement to supply different subassembly electronic modules for F-35 aircraft avionics; that production continues.

Northrop Grumman's integrated CNI suite provides F-35 pilots with the capability of more than 27 avionics functions including voice and data communication. The CNI design uses advanced software-defined radio technology that allows the simultaneous operation of multiple critical functions while greatly reducing size, weight and power demands on the advanced fighter aircraft.

Norway is one of the international partner countries participating in the F-35 program. Under a manufacturing license agreement between Kitron and Northrop Grumman, Kitron will manufacture sub-assemblies for the F-35 Joint Strike Fighter.

The Lockheed Martin (NYSE: LMT) F-35 Lightning II is the world's most advanced military aircraft, combining advanced stealth with fighter speed and agility, advanced mission systems, fully fused sensor information, network-enabled operations and cutting-edge sustainment.