The government has set its sights on Lockheed Martin, the largest contractor for the US Army. It manufactures combat fighters, such as the F-35 that the Navy is considering buying, helicopters (the Council of Ministers has just authorized the purchase of eight MH-60R); missiles, such as the Patriot deployed in Türkiye, or radars. The giant is now announcing its interest in growing in Spain, taking advantage of the new golden age of the military industry led by the historic increase in defense spending. Its executive director for Europe, Jonathan Hoyle, confirmed this in an interview with La Vanguardia on the occasion of the Feindef Defense fair held in Madrid.
Does Lockheed Martin see opportunities to grow in Spain?
We are seeing an increase in defense budgets across Europe. It's partly the result of the war in Ukraine, but in reality it all goes back to the 2014 NATO summit in Wales, when all members pledged to spend 2% of GDP. Ukraine has caused an emergency. Some countries are resupplying and others are investing in new capacity. This presents opportunities for a company like Lockheed Martin, with a broad product portfolio. So yes, to your specific question. The increase in spending in Spain offers opportunities.
Do you have any type of industrial process in Spain?
We have employees in Spain. We have substantial collaborations with companies like Navantia and we rely on our Spanish partners to have the workforce here in Spain. We keep US operators to a minimum so there is more local participation. It is a historical way of working.
There has been a turn in Europe to invest more in Defense.
We are looking for opportunities throughout Europe. We see a change in governments, who would like to see companies like Lockheed Martin invest directly in their industrial ecosystem. We are looking for those opportunities, both for investments and for an increase in our presence in joint projects. We are looking to expand our business in Europe over the next few years.
Are you interested in Spain?
Specifically yes. Together with other countries, but yes, we are interested in investing in Spain, in reaching more agreements with Spanish companies
Are you satisfied with the government's determination to increase military spending?
I see the government announcements and I have no reason to doubt. I hope that all the heads of government will reveal at the NATO Summit in Vilnius in July what their plans are to reach 2% investment. I don't think Spain is different.
In the United States, "the last supper" was a movement to group arms companies. Do you see a last supper possible in Europe?
Defense companies attract a lot of attention from governments. They are part of the critical national infrastructure because countries want to have their own production capacity to defend their nation and protect their borders. So any rationalization of the industry is positive. I have been working in the Defense industry for more than 40 years and it has always been on the agenda. And there have been successful mergers, Airbus, for example. I think we will see more in the future.
What are your main contracts in Spain?
We are working on the F110 frigate program with Navantia, a very successful collaboration in which we provide the weapons and control system. Indra is also part of the program. We also work with GMV in the space field. We value the highly qualified workforce in technology of the Spanish industry. In the future we will also seek more direct participation, through a supply chain in Spain and in other European countries, as part of the strategy to build our business internationally. We see the need to get more directly involved as prime contractors on projects.
Do you see the contract for the F-35 fighter for the Navy close?
It is a matter that the governments of Spain and the United States are negotiating. The sale of F-35s is directed by the US government through its foreign military sales process. The negotiation has to continue at the government-to-government level and, after that, our contracts will be with the United States Government to supply the planes. We are not part of the negotiation and we are only waiting for Spain's request. That's how we work. The three most recent F-35 contracts, with Germany, Finland and Sweden, were signed this way, through negotiations between governments.
What role do you think Indra plays on the world stage?
It is an integral part of your Spanish Defense ecosystem. It is a major operator. I believe that anyone who wants to do business here in Spain needs to have a working relationship with Indra and we are no different. We have already done it, we already work with them.
