Lockheed Martin targets European market for Thaad missile defence

BERLIN (Reuters) -U.S. defence contractor Lockheed Martin is seeking to market its Thaad missile defence system to European buyers, the company told German newspaper Handelsblatt, as governments across the continent accelerate military spending in response to Russian threats.

In an interview published on Friday, the president of Lockheed Martin International, Michael Williamson, said the group is in negotiations with potential customers for the system, which costs more than 1 billion euros ($1.17 billion).

Thaad could be introduced to Europe as part of the European Skyshield Initiative, an air-defence project led by Germany, as an alternative to Israel's Arrow 3 system, for which Berlin has already opted, the paper reported.

DRONE PARTNERSHIPS RESHAPE MILITARY PROCUREMENT

Europe's defence budgets have soared since Russia invaded Ukraine in 2022, with governments including Germany planning hundreds of billions of euros in investments.

Recent incidents involving suspected Russian drones entering NATO airspace, including in Denmark and Poland, have added urgency to bolster missile and drone defences.

This has attracted Northrop Grumman and Lockheed Martin to compete in the region, according to Handelsblatt. Williamson told the paper he sees the greatest growth prospects in markets outside the U.S., such as Europe, over the next five years.

Lockheed Martin's partnership with Rheinmetall is seen as key to securing future contracts in Germany. Williamson said the cooperation creates jobs and opens doors to political decision-makers, according to Handelsblatt.

However, European governments remain wary of U.S. dominance, with Denmark recently rejecting the U.S. Patriot system in favour of the European-made SAMP/T.

($1 = 0.8565 euros)

(Reporting by Kirsti KnolleEditing by Ludwig Burger and Nick Zieminski)