In selected countries, EADS is seeking to enhance its industrial presence significantly throughout the value chain – developing, manufacturing and selling in these major marketplaces.

In 2005, the CEOs decided to make global industrial development a key dimension of the Group’s long-term strategy, and to dedicate a team to driving its implementation. The aim is to ensure future growth by becoming an integral part of growth markets and accessing the best resources worldwide. EADS is developing an industrial strategy for each of the key markets it has identified. The target is to capture growth in the most attractive markets through a selective industrial approach, while further developing the industrial base in the four home countries.

Aerospace and defence is a global industry. As such, globally allocated capabilities of research, development, sourcing, manufacturing and after-sales service are increasingly factors for success. Being active in all-important aerospace and high-tech countries gives EADS access to the best technology and know-how available. This improves its products and gives them a competitive advantage. It also has the benefit of reducing exposure to the Euro by balancing production costs across several currencies.

Additionally, governments often exercise strong control over markets and prefer to buy from local contractors – at the very least, they expect contractors to source significant contract percentages locally. Therefore, to continue its growth, EADS believes it is essential to become a local company, a good neighbour and a committed citizen in its target markets.

EADS is focusing especially on the United States, the largest single market; on Asia-Pacific, the region with the highest growth potential; and on Russia, where a very capable aerospace industry is beginning to regain its former strength. Within Asia-Pacific, countries like China, India and South Korea are of high priority.

These countries have the greatest demand potential and are home to companies that would make high-quality partners with industrial capabilities, as well as local market know-how. On a global basis, the North American defence market and the Asian commercial and defence markets are the fastest-growing. In addition to these countries, EADS will further pursue its successful strategy of co-operation, and will acquire local players in all key markets. Examples of this are Patria in Finland and Australian Aerospace Industries, both creating growth opportunities and market access in their respective markets.