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Wednesday, December 4, 2024

Safran DSI Joins Ranks of European Arms Makers Investing in U.S. Manufacturing

 Safran Defense and Space launched a strategy to boost manufacturing in the U.S., following a number of European competitors taking steps to grow in the country.

The company, a U.S. subsidiary of the French aerospace and defense group Safran, said it plans to make major investments in manufacturing in several U.S. states, but didn't provide any figures.

These investments will focus on technological innovations that could enhance national security and the armed forces, in areas such as satellite propulsion and communication, geospatial artificial intelligence, and navigation without GPS, the company said.

Safran DSI President and Chief Executive Joe Bogosian said these investments will create jobs in the U.S.

"By leveraging Safran's globally proven expertise and investing in U.S. engineering and product development, Safran DSI can offer tailored solutions today for fast evolving challenges across air, land, sea and space domains," he said in a statement.

Safran's announcement comes as several other European aerospace and defense companies such as Germany's Rheinmetall, Italy's Leonardo and the U.K.'s QinetiQ set out plans to invest and grow in the U.S.

Rising geopolitical tensions involving the U.S. and the return of Donald Trump to the White House next month are two reasons often cited by defense industry representatives for their growing interest in the U.S. market.

Rheinmetall Chief Executive Armin Papperger said in August that he had received reassurances from a Trump ally that a Republican administration wouldn't harm the German arms maker's prospects in the country as long as it continued to create jobs in the U.S.

Safran DSI also said it will soon inaugurate new headquarters in Arlington, Va., which is home to the Pentagon and several defense companies including Leonardo DRS, Boeing, RTX--formerly known as Raytheon--and Airbus U.S. Space and Defense.

https://www.morningstar.com/news/dow-jones/202412041954/safran-dsi-joins-ranks-of-european-arms-makers-investing-in-us-manufacturing

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