American companies are eager to not miss out on the European defense boom. After years of slow growth, the shift following the war in Ukraine has increased orders once again. However, the growing push towards developing European sovereign products could result in fewer purchases from the American industry, which is used to supplying the arsenals of the old continent during times of scarcity. This is a train that the major conglomerates in the United States do not want to miss, and Spain is on their radar.
It is a delicate position, as companies like RTX and Lockheed Martin must balance their commitment to Europe without upsetting Donald Trump and his administration or making them think they are investing too much outside the United States. Therefore, the chosen path is through industrial partnerships, initiating the search for factories and partners willing to manufacture American weaponry as subcontractors.
Major American giants like Lockheed Martin and RTX have already presented their investors with a strategy to sustain strong demand, especially for anti-aircraft missiles like the Patriot, which both companies manufacture together. In the case of RTX, out of the $10 billion in international contracts signed in the first semester, $7 billion came from Europe.
The company's CEO highlighted the increased momentum of "coproduction agreements on the continent". "We will adjust it as demand grows," stated the executive. Both RTX and Lockheed Martin signed agreements to strengthen collaboration with the Spanish government last year at Feindef, the main Defense fair, and contacts continue despite the somewhat frosty relationship at the highest levels between Washington and Madrid.
Spain already has significant partnerships with these two companies to manufacture components of their missiles with Oesia and Sener, as well as a framework agreement signed two years ago between Lockheed and Indra to explore joint investment operations in various fields. Particularly, Indra plays a key role in thawing these relationships with its potential agreement with Santa Bárbara, owned by the American company General Dynamics. If negotiations to share contracts successfully progress, new opportunities could accelerate.
The NATO summit in Ankara has been the starting point for these types of agreements. The decision to manufacture ATACMS missiles for the first time in Europe in a partnership between Lockheed Martin and Germany is an example of the agreements being put on the table. Additionally, the licensed production of Patriot missiles for Ukraine has also begun.
RTX is also very active in these agreements. In addition to collaborations in Spain, the company also partners with the Norwegian Kongsberg for its Nasams air defense system. Kongsberg, in turn, is another company growing in Spain, awaiting opportunities.
These alliances of the American group are also present in Poland. Besides monetary logic, there is an industrial logic as well. The combination of the war in Ukraine and the attacks from Iran has depleted the American arsenals of interceptors, leading to a high demand from the Pentagon for companies that are already overwhelmed in producing a quantity of weaponry that had not been in demand for years.
This is where European companies come in, although they are facing difficulties in finding locations to build factories or adapt facilities, as is the case with Indra's project in Northern Spain, sparking a fierce competition in Asturias with Duro Felguera.
At the same time, European companies by no means see the American market as closed off. Indra established its first defense subsidiary in the country this year, as reported by this outlet, while Navantia is also eyeing the possibility of securing contracts for the renewal of the American fleet.
In Europe, Rheinmetall is one of the companies that has strongly invested in growing in the United States and is competing with General Dynamics for the production of the Bradley armored vehicle replacement.
The Italian company Leonardo has also acquired a new company in the country and is focusing on expanding its electronic defense division. Among their achievements is the awarding of a contract in the second quarter for systems to neutralize aerial threats and another to replace components of the electric propulsion of the new generation of Navy submarines.