US defense industry giant Raytheon praised its local presence in Europe in statements made at the Paris Air Show and stated that they are closely observing the impact of the “defense sovereignty” breakthrough experienced on the continent. The company aims to expand its partnerships in Europe and strengthen its supply chain.
Expansion of Existing Partnerships and New Collaborations
Tom Laliberty, Raytheon's president of ground and air defense systems, told reporters that the company NASAMS air defense system announced that it has extended its partnership with Norway’s Kongsberg for another ten years to produce. Laliberty also stated that they are looking to add more supply chain partners to their cooperation agreements in Europe.
The European Union has been pressuring member states to increase defense spending in a bid to support domestic defense manufacturers and reduce reliance on external suppliers, including the U.S. EU plans such as “ReArm Europe” create incentives for companies like RTX, the parent company of Raytheon, to strengthen their credentials in Europe.
“I think there’s a very appropriate focus, long term, on building capacity in Europe,” Laliberty said. “We’ll continue to participate in those partnerships, build new partnerships and make sure we’re part of the European strategy going forward.” RTX, which also includes Collins Aerospace and engine maker Pratt & Whitney, has about 24.000 employees in Europe, he said.
Europe's Security Concerns and Rising Demand
Europe's efforts to boost its domestic defense industry come amid concerns about increased aggression and a U.S. withdrawal from the continent following Russia's 2022 invasion of Ukraine. U.S. President Donald Trump has repeatedly threatened to withdraw from NATO security guarantees if European allies do not increase defense spending.
Laliberty said the partnerships are “the way we see Raytheon’s approach” in Europe. He noted that different countries have different approaches to sovereignty and “we are trying to be open and help them meet those requirements.” “Maybe some of those relationships will change, we will supply some of our European partners or we will increase the share of work on some of our programs, but I certainly believe we have a very bright future in Europe.”
Major Agreements and Production Increase
Raytheon in Europe this week Stinger short-range air defense missile signed a memorandum of understanding with Germany’s Diehl Defence to co-produce the weapon. The company aims to increase production of the weapon by 2026 percent by the end of 50 in response to “significant demand” regarding the Stinger’s performance in Ukraine.
US company develops future NASAMS system GhostEye radar announced plans to develop its components together with Kongsberg, while Laliberty said that Norwegian and European suppliers would be relied upon to support production.
According to Laliberty, with pan-European missile manufacturer MBDA in Germany GEM-T interceptor for Patriot air defense system The joint venture to produce the launcher “will use the European supply chain as much as possible,” he said. Raytheon has several partnerships for Patriot across Europe, including building the entire launcher in Poland. Raytheon is working on future contracts with several NATO countries and the NATO Support and Procurement Agency to take advantage of the new GEM-T capacity added to Germany, the official said.
“So we continue to work to find additional supply chains across Europe, to find additional partners, to really unlock the capacity here and increase our ability to get more products to the warfighter,” Laliberty said. “This transatlantic industrial base needs to meet the needs of all of NATO. So I’m very encouraged that we’re here for the long haul.”
