BAE Systems Inc.
(formerly BAE Systems North America
) is a major subsidiary of the British defense and aerospace company BAE Systems plc
. As per its Special Security Agreement
, BAE Systems Inc. operates as a semi-autonomous business unit within BAE Systems controlled at a local level by American
BAE has described the rationale for expansion in the US; " is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe." The company's 2004 strategy review confirmed a "strategic bias" for expansion and investment in the US. In 2007 BAE Systems Inc. had sales of £7,454 million and EBITA
of £741 million. These represent 46% and 45% respectively of BAE Systems' group results.
The company was created on 30 November, 1999. On this date Marconi Electronic Systems
(MES) and British Aerospace
(BAe) merged to form BAE Systems. Their respective subsidiaries in the USA
, Marconi North America and British Aerospace North America, were similarly merged to form BAE Systems North America.
In the company's 2003 Annual Report the Chairman sums up BAE Systems' strategy since the merger; "In recent years BAE Systems has undergone a radical transformation from a UK-based aircraft manufacturer to a broadly-based systems business.... Read More