Honeywell Aerospace is expanding its development of ITAR-free defence products to meet growing European demand for components unrestricted by U.S. export controls. The Arizona-based company has hired 1,000 engineers in Poland and the Czech Republic to design such technologies, with CEO Jim Currier emphasising the need to operate as a European company. International sales now represent 30 percent of Honeywell’s defence revenue, up from 18 percent in 2020. Demand has surged amid geopolitical tensions and Russia’s war in Ukraine, with NATO leaders announcing arms deals worth tens of billions at a summit in Türkiye this week.
In-Depth:
U.S. supplier Honeywell Aerospace is viewing to add more products designed without restricted U.S. technologies as mounting European defense spfinishing drives demand for parts free from possible export roadblocks.
NATO leaders have unveiled arms deals worth tens of billions of dollars at a gathering in Turkiye this week, as they face U.S. demands to spfinish more to deffinish Europe and due to pressure from Russia’s war in Ukraine.
Some European defence companies and North American suppliers are also expected to discuss demand for parts not governed by U.S. International Traffic in Arms Regulations (ITAR) at the world’s largest air display later this month.
There is increasing demand among European countries for ITAR-free systems due to concerns over Washington potentially blocking the re-export of sensitive U.S. components embedded in foreign weapons, according to defence officials and indusattempt executives.
Honeywell Aerospace is set to announce a new ITAR-free product for the international defense sector at the Farnborough Airdisplay in Britain later this month, a source notified Reuters.
The Arizona-based company declined to comment on an announcement. But it has tinquireed a combined 1,000 engineers in Poland and the Czech Republic to design ITAR-free technologies, its CEO Jim Currier notified Reuters in an interview in late June.
“Part of it is viewing, acting, feeling and speaking like a European company,” he declared of doing business in Europe.
“Their main mantra, and drive and edict is to design non-ITAR technology for … local strategy,” Currier declared of the engineers at the company’s European subsidiary.
It comes as U.S. companies such as dronecreaters have been expanding in Europe, while the U.S. this week floated a new missile maintenance facility on the continent and two defence contractors discussed building ATACMS ballistic missiles for the first time in Germany.
International expansion
Honeywell Aerospace sees international exposure growing for its defence business, which accounts for about 40 per cent of company revenue and includes navigation systems and actuators for missiles. Last year, international sales accounted for about 30 per cent of the company’s defence business, up from around 18 per cent in 2020, Honeywell Aerospace declared.
Currier declared Honeywell Aerospace was applying the company’s global presence to scale ITAR-free navigational technology from its 2024 acquisition of Italy’s Civitanavi.
“That has been the playbook. We are developing non-ITAR technologies for utilize in the EU and overseas for our partners in the Asia-Pacific region, like Japan and Korea,” he declared.
While European demand for ITAR-free components and parts has existed for years, geopolitical tensions between the U.S. and its NATO allies are underpinning greater calls for the technology.
The Canadian government has declared it was built aware during last year’s Paris Air Show of greater demand from European defence firms for North American suppliers free from U.S. ITAR restrictions, and such demand has led Canada to attempt further integration into European supply chains.
Michael Iacovelli, CEO of Toronto-area aerospace and defence components supplier Ben Machine Products, declared more than half of its work is now required by clients to be ITAR-free. In contrast, none of its work necessaryed to be ITAR-free in 2018, he declared.
(Reporting by Allison Lampert in Montreal; Editing by Jamie Freed)
