National Defense Magazine:
Facing a slowdown in U.S. Navy orders, Lockheed Martin Corp. is eyeing opportunities in the international market for the Aegis air-defense antimissile system.
Aegis uses an array of ship-based computers and radar to track and guide interceptor missiles to destroy enemy targets. It has been sold to five navies outside the United States, which have equipped 19 ships with the system.
Lockheed is now looking to expand the international Aegis market by offering business incentives to current buyers — Spain, Japan, Norway, Australia and the Republic of Korea — to continue to invest in the system, and also is bent on attracting new customers.
Arms sales of big-ticket systems like Aegis now require substantial industrial incentives and technology transfer, said Doug Wilhelm, director of international Aegis programs at Lockheed Martin. “One of the constants in international programs is the growing desire for technology transfer and for the local defense industries to have a significant role in the program,” he told reporters.
“Aegis has become the naval combat system of choice for top tier navies,” Wilhelm said. Brand-name appeal alone, however, is not enough. To open up the Aegis market, Lockheed is sweetening deals not only by offering traditional industrial offsets but also by funding technology upgrades to make it easier for foreign buyers to adapt Aegis to their specific ships models and command-and-control systems.
The company is making a big push for international sales amid worries that the U.S. Navy is delaying Aegis upgrades for current and future ships. Although Aegis is a 40-year-old system, it has been updated over the years. Its latest version, baseline 9, is capable of simultaneous anti-air warfare and ballistic missile defense. Aegis tracks, cues and fires automatically. The newest version uses the Standard missile 6, made by Raytheon. The Aegis system includes Lockheed Martin’s SPY radar. Ships can intercept and destroy short and medium-range ballistic missiles….
