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Kraken Robotics of Newfoundland inks deals with Danish and Polish navies

Kraken Robotic's Katfish, a high-speed device used to map the ocean bed in ultra-high definition. Kraken has delivered two Katfish to an American customer specializing in underwater security. The second sale was a big factor in Kraken's financial report for the opening quarter of 2020, which showed the Mount Pearl-based company with a net profit for the first time. CONTRIBUTED
Kraken Robotic's Katfish will be used by the Danish Royal Navy and the Polish Navy to hunt down mines. Submitted/Kraken

Contract in Denmark worth up to $40 million over a two-year period

In a year that’s been problematic for many businesses, Newfoundland-based Kraken Robotics stands apart, scoring major successes throughout.

The latest was announced Tuesday, a contract counted in millions with the Danish Ministry of Defence, Acquisition and Logistics Organization (DALO) to supply mine-hunting sonar equipment to the Royal Danish Navy.

The deal with the Danish Navy was first announced by the company in July.

At that time, Kraken said the total contract was valued between $35-million and $40-million, over a two-year equipment acquisition phase.

The contract will see Kraken deliver the KATFISH towed synthetic aperture sonar, the Tentacle winch and Autonomous Launch and Recovery System (ALARS), and provide ongoing service for the technology.

Kraken had actually been chosen as the successful bidder for the Danish navy contract in 2019, through a competitive bid process.

However, one of the losing bidders launched a complaint about the bid process. And a slowdown in government activity because of COVID caused some delays in finalizing the contract.

The contract also means the company will be establishing a presence in Denmark.

In a press release, company president and CEO Karl Kenny said Kraken will be establishing a new Danish Centre of Excellence in Mine Counter Measures, as part of its commitment to Denmark in this contract.

“This new operation will not only conduct research and development to further improve the capabilities of Kraken’s world-class MCM solutions but will also be able to offer local technical support for Danish customers,” said Kenny. “Kraken’s new Danish operation will also engage with local Danish companies, universities and technical institutes, ensuring a long term benefit to Danish technical development.”

That’s not the limit of Kraken’s ventures into Europe.

The company also announced Tuesday that on Sept. 1 it had signed a contract to supply minehunting systems to the Polish Navy.

This contract will see Kraken deliver its KATFISH™ towed Synthetic Aperture Sonar, Tentacle® Winch and Autonomous Launch and Recovery System (ALARS) in the second half of 2021.

Kraken’s equipment will be integrated onboard the Polish Navy’s new KORMORAN II Mine CounterMeasure (MCMV) vessels in Gdansk, Poland.

The Newfoundland company could not offer details about the value of the contract.

“Due to confidentiality reasons, Kraken cannot disclose specifics about the contract, other than to say that it is significant and that we expect it to be a strong enabler within other NATO nations.”

Kenny did say that if the Polish Navy is successful in exporting its KORMORAN II MCMVs to other countries, it could lead to additional KATFISH™ and ALARS sales opportunities for Kraken.”

Captain Piotr Sikora, Chief, Naval Warfare Systems Branch, Armament Division, Polish Navy Inspectorate, did say in a news release that Kraken’s KATFISH™, when put to tests at sea, proved able in shallow water and very shallow water zones.

“The unique capabilities of this system will provide us with much greater efficiency and will allow us to build strength for the 21st century. We are convinced that with such an advanced Synthetic Aperture Sonar onboard, our new MCM Vessels under the Polish and NATO flag will make a huge contribution to build both national and international security at sea as we face the naval mine challenges of the 21st century.”

Kraken Robotics is a publicly-traded company, listed on the Toronto Stock Exchange (TSX-V: PNG, OTCQB: KRKNF)

They have offices in Mount Pearl and Halifax, and currently employ about 115 people.

Twitter: @BarbDeanSimmons


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