BAE Systems may move some business overseas
BAE Systems, Britain's leading defence equipment manufacturer, has little option but to move some of its expertise overseas to make up for wide cuts in spending in the UK and US.
Analysts believe that BAE shall have to move some of its business to foreign countries if it wants to break into new markets.
Speaking on the topic, a defence analyst said, "They are going to have to do something tangible in return for breaking into new markets and keeping customers and that means shifting more manufacturing abroad."
Barclays Capital analysts also said they believe that the defence company might consider divesting some of its weaker assets.
As the Ministry of Defence is trying to slash spending by £37 billion, BAE has already started to close facilities in the UK and US- two of its biggest markets.
Some reports suggest that the defence equipment group is targeting Gulf States, Far East countries and Brazil for its struggling naval and aircraft business.
BAE recently suffered tough blow when Indian Government rejected BAE Systems' Typhoon jets in favor of French rival Dassault's Rafale jets.
Defence spending cuts have already forced BAE to shed nearly 15,000 jobs out of its global workforce of around 100,000 people over the last two year. More jobs cuts are in prospect as economic conditions continue to be tough.
