US aerospace and defence supplier Honeywell Aerospace is ramping up development of products free from restricted American technologies, as surging European defence spending fuels demand for parts that won’t run into US export roadblocks.
The move comes as NATO members unveiled tens of billions of dollars in new arms deals at a summit in Turkey this week, driven by pressure from Washington to boost defence budgets and continued fallout from Russia’s war in Ukraine. European governments and defence executives say demand for equipment free of US International Traffic in Arms Regulations, or ITAR, is rising amid concerns that Washington could block the re-export of American components embedded in foreign-made weapons systems.
A source told Reuters that Honeywell Aerospace plans to unveil a new ITAR-free product for the international defence market at the Farnborough Airshow in Britain later this month. The company declined to comment on any announcement but confirmed it has assigned roughly 1,000 engineers across Poland and the Czech Republic to design technology free of US export controls. Chief executive Jim Currier said doing business in Europe increasingly means operating like a European company, with local engineering teams focused squarely on designing non-restricted technology for regional needs.
The push mirrors a wider trend of American defence firms expanding operations on the continent, including drone makers and new missile maintenance and co-production efforts with European partners. Honeywell’s defence unit, which makes up about 40% of the company’s revenue and includes missile navigation systems and actuators, has seen its share of international sales grow from roughly 18% in 2020 to about 30% last year. Currier said the company is scaling ITAR-free navigation technology developed through its 2024 acquisition of Italy’s Civitanavi, with plans to extend the approach to partners in Asia-Pacific markets such as Japan and South Korea.
The trend extends beyond Europe. Michael Iacovelli, chief executive of Toronto-area supplier Ben Machine Products, said more than half of his company’s work is now required to be ITAR-free, up from none in 2018, as Canadian firms seek deeper integration into European defence supply chains.
Source: reuters.com