* Lockheed will exceed target of 20 pct foreign sales-exec
* Company is targeting Middle East, India, Japan
* Lockheed also sees opportunities in cyber security
By Andrea Shalal-Esa
PARIS, June 21 Lockheed Martin Corp,
already the biggest U.S. weapons maker and largest provider of
IT services to the U.S. government, wants to become a powerhouse
in foreign markets such as the Middle East and India, a top
Lockheed made about 17 percent of its $47 billion of revenue
abroad in 2012, or $8 billion, and will "absolutely" exceed its
current goal of 20 percent, Pat Dewar, senior vice president for
corporate strategy and business development, told Reuters.
The maker of the F-35 fighter jet and Aegis missile systems
still lags rivals Raytheon Co, with about 26 percent of
sales from abroad, and Boeing Co's defense division,
which says about 42 percent of its backlog is outside the United
States. Both rivals are targeting 30 percent foreign revenue.
"We're moving much more aggressively in the international
domain," Dewar said at the Paris Airshow, without giving a new
target. "We're going global in a much bigger way."
Lockheed and other big U.S. arms manufacturers are looking
to exports and foreign markets to provide continued growth as
U.S. military spending slows amid mounting fiscal pressures, and
the end of the wars in Iraq and Afghanistan.
Lockheed is already working in 70 countries and has what it
calls "home team capability" in Britain, Australia and Canada.
Now it plans to pump up local operations in other areas such as
the United Arab Emirates, Saudi Arabia, Japan and India.
"We are going to move the corporation from being essentially
overwhelmingly U.S. with international sales, to being a healthy
local delivery system in those countries where the governmental
relations are strong, and where industry relations are strong or
can be strengthened," Dewar said.
Lockheed hopes focusing more on local operations, rather
than merely selling products or bringing in experts from U.S.
sites, will give it the edge over its competitors, Dewar said.
In February, Lockheed opened new headquarters in Riyadh, in
Saudi Arabia, and signed an agreement with Saudi Arabian
Airlines to pursue opportunities such as a new training
organization for the aerospace sector.
Lockheed has already sold its Terminal High Altitude Area
Defense (THAAD) missile defense system to the United Arab
Emirates, where it has a stake in a large aircraft maintenance
and overhaul business.
Saudi Arabia is looking closely at the THAAD system and has
been briefed by the Pentagon's Missile Defense Agency, he said.
In India, the company has a joint venture with Tata Advanced
Systems for manufacturing airframe components for the C-130J, a
large transport plane that Lockheed is selling to India.
"We think that's a base of operations and a base to expand
from," Dewar said.
Lockheed also has a large industrial partnership with
Italy's Alenia, a unit of Finmeccanica, for final
assembly of the F-35, and just signed a similar deal in Japan
with Mitsubishi Heavy Industries.
In addition to weapons-related work, Lockheed sees growing
opportunities for civilian projects and already runs the census
or manages postal systems in Britain, Canada and Australia.
Dewar sees Lockheed's strength as being able to apply
experience managing logistics for big weapons systems to
government IT, as it has done in the U.S., where it has been the
government's top information technology provider for 18 years.
Cyber security is drawing particular interest from other
governments, particularly in the Middle East and Asia, Dewar
said, although he declined to identify specific customers.
Lockheed is one of the big players in the U.S. cyber market,
where it provides a range of services for the military and
intelligence services. Escalating cyber attacks against global
computer networks, including Saudi Arabia's national oil and gas
company, are generating demand for similar services overseas.
"Cyber could essentially be the door opener in many of these
cases," Dewar said.