When several European NATO countries joined forces to purchase new fighter jets in the 1970s, the choice fell on the American General Dynamics and their F-16. What was called the "largest arms sale of the century", included European industry contracts, and the Holmestrand plant was chosen as one of the subcontractors.
They produced the so-called "drop tanks", extra fuel tanks that increase the aircraft's range. In the years 1979-1984, the plant delivered several thousand drop tanks for F-16 aircraft.