Lockheed Martin and Raytheon are awaiting a decision on a €8 billion contract to provide warfare equipment, such as jet fighters and missile defense system to Germany and Poland.
Federal Republic of Germany is currently assessing whether to purchase Lockheed’s new medium extended air defense system, or planned update to Raytheon’s Patriot product. The Poland’s decision will influence Germany’s choice over missile system.
The demand for an anti-air craft missile and jet fighters have increased over the period, specifically in Europe, due to threats imposed by North Korea, Islamic State Syria, Iraq (ISIS), and Russia.
Nicosia Business Review, research analyst at Lexington Institute Loren Thomson said, “Patriot is Raytheon’s premier calling card in the global arms market and if Lockheed now cuts into that franchise, it would significantly reshape the competitive landscape.”
Lockheed Martin estimates market of approximately $100 billion for the next 15 years in Europe, given that the defense company is successfully awarded air defense contract by Germany and Poland.