Editing BAE Systems (section)

==Areas of business==
BAE Systems' biggest markets are the US 44%, UK 20%, Saudi Arabia 11% and Australia 4%, as of 2022.<ref name=2022_Annl_Report/>

===United Kingdom===
BAE Systems is the main supplier to the UK [[Ministry of Defence (United Kingdom)|MoD]]; in 2009/2010 BAE Systems companies in the list of Top 100 suppliers to the MoD received contracts totalling £3.98&nbsp;billion, with total revenue being higher when other subsidiary income is included.<ref>{{Cite news |title=MoD top 100 suppliers: How you each gave BAE Systems £64 last year |url=https://www.theguardian.com/news/datablog/2010/dec/01/mod-top-suppliers-bae |work=The Guardian |location=London |date=1 December 2010 |first=SA |last=Mathieson |access-date=16 December 2010 |archive-url= https://web.archive.org/web/20110122091933/http://www.guardian.co.uk/news/datablog/2010/dec/01/mod-top-suppliers-bae |archive-date= 22 January 2011 |url-status= live}}</ref> In comparison, the second largest supplier is [[Babcock International Group]] and its subsidiaries, with a revenue of £1.1&nbsp;billion from the MoD. Oxford Economic Forecasting states that in 2002 the company's UK businesses employed 111,578 people, achieved export sales of £3&nbsp;billion and paid £2.6&nbsp;billion in taxes. These figures exclude the contribution of Airbus UK.<ref>{{cite web |url= http://www.oxfordeconomics.com/Free/pdfs/BAEFinalReport.pdf |title= The economic contribution of BAE Systems to the UK and implications for defence procurement strategy |date= January 2004 |publisher= Oxford Economic Forecasting |page= 51 |access-date= 13 January 2007 |archive-url= https://web.archive.org/web/20070102121735/http://www.oxfordeconomics.com/Free/pdfs/BAEFinalReport.pdf |archive-date= 2 January 2007 |url-status= dead}}</ref>

After its creation, BAE Systems had a difficult relationship with the MoD. This was attributed to deficient project management by the company, but also in part to the deficiencies in the terms of "fixed price contracts". CEO [[Michael Turner (businessman)|Mike Turner]] said in 2006 "We had entered into contracts under the old competition rules that frankly we shouldn't have taken".<ref>{{Cite news |first=Angela |last=Jameson |title= BAE Systems chief reaps reward for years of fighting for revival |url= http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article735302.ece |work= [[The Times]] |location= London |date= 27 February 2006 |access-date= 9 November 2006 |archive-url= https://web.archive.org/web/20110611171023/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article735302.ece |archive-date= 11 June 2011 |url-status= dead}}</ref> These competition rules were introduced by [[Peter Levene, Baron Levene of Portsoken|Lord Levene]] during the 1980s to shift the burden of risk to the contractor and were in contrast to "cost plus contracts" where a contractor was paid for the value of its product plus an agreed profit.<ref name="basic">{{cite web |url= http://www.basicint.org/pubs/Papers/BP50.pdf |title= The UK Defence Industrial Strategy and Alternative Approaches |access-date=9 November 2006 |author=Dr Steven Schofield |date=March 2006 |work=Basic Papers: Occasional Papers on International Security Policy |page= 5 |archive-url= https://web.archive.org/web/20061108211358/http://www.basicint.org/pubs/Papers/BP50.pdf |archive-date= 8 November 2006}}</ref>

BAE Systems was operating in "the only truly open defence market",<ref>{{Cite news |first=Graham |last=Warwick |title= Best of British; For years BAE Systems' identity was British, but with its investment in foreign markets increasing, change is just around the corner |work=Flight International |publisher=Reed Elsevier Inc. |page= 48 |date= 6 June 2004}}</ref> which meant it was competing with US and European companies for British defence projects, while they were protected in their home markets. The US defence market is competitive; however, largely between American firms, while foreign companies are excluded. In December 2005 the MoD published the Defence Industrial Strategy (DIS) which has been widely acknowledged to recognise BAE Systems as the UK's "national champion".<ref name="econdis">{{Cite news |title= BAE Systems: Changing places |url= http://www.economist.com/world/britain/displaystory.cfm?story_id=8091318 |newspaper=The Economist |publisher=The Economist Newspaper |date= 26 October 2006 |access-date=9 November 2006 |archive-url= https://web.archive.org/web/20061115211145/http://www.economist.com/world/britain/displaystory.cfm?story_id=8091318 |archive-date= 15 November 2006 |url-status= live}}</ref> The government claimed the DIS would "promote a sustainable industrial base, that retains in the UK those industrial capabilities needed to ensure national security."<ref>{{cite web |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/272203/6697.pdf |title=Defence Industrial Strategy |author=<!--Not stated--> |date=December 2005 |website= assets.publishing.service.gov.uk|publisher=Ministry of Defence |access-date=2021-02-26 |quote=}}</ref>

After the publication of the DIS BAE Systems CEO Mike Turner said "If we didn't have the DIS and our profitability and the terms of trade had stayed as they were... then there had to be a question mark about our future in the UK".<ref>{{Cite news|first=Douglas |last=Barrie |title=British Defense Industrial Strategy Secures BAE Systems as UK. Champion |url=http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news/12195p1.xml |archive-url=https://web.archive.org/web/20120404114426/http://www.aviationweek.com/aw/generic/story_generic.jsp?channel=awst&id=news%2F12195p1.xml |archive-date=4 April 2012 |work=Aviation Week & Space Technology |publisher=The McGraw-Hill Companies |date=7 December 2005 |access-date=9 November 2006 |url-status=dead}}</ref> Lord Levene said in the balance between value for money or maintaining a viable industrial base the DIS "tries as well as it can to steer a middle course and to achieve as much as it can in both directions. ...We will never have a perfect solution."<ref>{{Cite journal |date= Summer 2006 |title= New Deal for UK Industry |journal=Interavia |issue= 684 |pages= 10–17 |issn= 1423-3215}}</ref>

===United States===
{{main|BAE Systems Inc.}}

The attraction of MES to British Aerospace was largely its ownership of Tracor, a major American defence contractor.<ref name="integrated">{{Cite news |title=Getting it together? |newspaper=The Economist |publisher=The Economist Newspaper |date=20 July 2002 <!--|access-date=17 September 2007-->}}</ref>

BAE Systems Inc. now sells more to the US Department of Defense (DOD) than to the UK MoD.<ref>{{Cite news |first=David |last=Robertson |title=Milestone for BAE as its trade with America outstrips MoD business |url=http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2231494.ece |work=[[The Times]] |location=London |date=10 August 2007 |access-date=7 September 2007 |archive-url=https://web.archive.org/web/20110611171055/http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article2231494.ece |archive-date=11 June 2011 |url-status=dead}}</ref> The company has been allowed to buy important defence contractors in the US; however, its status as a UK company requires that its US subsidiaries are governed by American executives under [[Special Security Arrangement]]s. The company faces fewer impediments in this sense than its European counterparts, as there is a high [[Special Relationship (US-UK)|degree of integration]] between the US and UK defence establishments. BAE Systems' purchase of [[Lockheed Martin Aerospace Electronic Systems]] in November 2000 was described by [[John Hamre]], CEO of the [[Center for Strategic and International Studies]] and former [[United States Deputy Secretary of Defense|Deputy Secretary of Defense]], as "precedent setting" given the advanced and classified nature of many of that company's products.<ref>{{Cite news |first=Greg|last=Schneider|title=Arms Across the Atlantic; A Yank Leads the Former British Aerospace To the Top Tier of U.S. Defense Contractors|newspaper=The Washington Post |date=7 November 2000 <!--|access-date=14 September 2007-->}}</ref>

The possibility of a merger between BAE Systems Inc. and major North American defence contractors has long been reported, including [[Boeing]], [[General Dynamics]], [[Lockheed Martin]], and [[Raytheon]].<ref name="mergerships">{{cite news |url=http://news.bbc.co.uk/2/hi/business/3660139.stm |title=BAE shares rise after sales talk |work=BBC News |date=26 April 2004 |access-date=8 December 2005 |archive-url=https://web.archive.org/web/20040709142943/http://news.bbc.co.uk/2/hi/business/3660139.stm |archive-date=9 July 2004 |url-status=live}}</ref><ref>{{Cite news |first=James |last=Boxell|title=Armor opens Pentagon door for BAE|work=Financial Times|date=8 May 2007}}</ref><ref>{{Cite news |first=Peter|last=Spiegel|title=Boeing head rejects tie-up with BAE: New chief executive of US aerospace group says UK defence contractor is 'not an attractive target' |work=Financial Times |date=3 February 2004}}</ref>

===Rest of the world===
[[BAE Systems Australia]] is one of the largest defence contractors in Australia, having more than doubled in size with the acquisition of Tenix Defence in 2008.<ref>{{Cite news |first=Bradley|last=Perrett|title=BAE completes acquisition of Tenix Defense|work=Aerospace Daily & Defense|publisher=The McGraw-Hill Companies |date=2 July 2008}}</ref> The [[Al-Yamamah arms deal|Al Yamamah agreements]] between the UK and [[Saudi Arabia]] require "the provision of a complete defence package for the Kingdom of Saudi Arabia"; BAE Systems employs 5,300 people in the country.<ref>{{cite web |url=https://www.baesystems.com/en/our-company/our-businesses/bae-systems-saudi-arabia/our-people |title=Our People |author=<!--Not stated--> |website=baesystems.com |publisher=BAE Systems |access-date=2 November 2018 |archive-url=https://web.archive.org/web/20190406012638/https://www.baesystems.com/en/our-company/our-businesses/bae-systems-saudi-arabia/our-people |archive-date=6 April 2019 |url-status=live}}</ref> As of March 2022, BAE Systems employs over 7,000 people in Saudi Arabia and 75 per cent of the employees are Saudi nationals.<ref name=":0">{{Cite web |date=2022-03-11 |title=BAE Systems has Saudi Arabia's 2030 localization targets as its core goal |url=https://arab.news/vyz39 |access-date=2022-03-11 |website=Arab News |language=en}}</ref> BAE Systems' interests in Sweden are a result of the purchases of [[Alvis plc|Alvis Vickers]] and UDI, which owned Hägglunds and [[Bofors]], respectively; the companies are now part of [[BAE Systems AB]].<ref>{{cite web|url=http://www.afconsult.com/en/newsroom/press-releases/all/2008/af-signs-framework-agreement-with-bae-systems-bofors-ab/|title=ÅF signs framework agreement with BAE Systems Bofors AB|date=24 June 2008|publisher=AF Consult|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225210637/http://www.afconsult.com/en/newsroom/press-releases/all/2008/af-signs-framework-agreement-with-bae-systems-bofors-ab/|archive-date=25 February 2018|url-status=live}}</ref>

On 6 April 2022, BAE Systems announced the establishment of BAE Systems Japan, a subsidiary located in Akasaka, Tokyo, Japan. The new company will provide comprehensive cooperation with Japanese industry and aims to strengthen relations with the [[Ministry of Defense (Japan)|Japanese Ministry of Defense]] and the [[Japan Self-Defense Forces]].<ref>{{cite web|url=https://www.aviationwire.jp/archives/248539|title=英BAE、日本に子会社設立 防衛省と関係強化|access-date=4 November 2022|lang=ja}}</ref>

In late August 2023, BAE Systems announced that it had opened an office in [[Ukraine]], and had signed an agreement for cooperation on the repair, spare parts, and production of [[L118 light gun|L119 howitzers]] within Ukraine.<ref>{{cite web |title=Twitter account of Oleksii Reznikov, Minister of Defence of Ukraine |url=https://x.com/oleksiireznikov/status/1697220765504897041 |access-date=31 August 2023 |publisher=Twitter}}</ref>

On 4 January 2024, BAE Systems announced an initial agreement, potentially worth up to $50 million, to resume production of titanium structures for the [[M777 howitzer]] for the US Army, with the first deliveries expected in 2025.<ref>{{Cite web |last=Sandle |first=Paul |date=4 January 2024 |title=BAE Systems signs US Army deal for M777 gun structures |url=https://www.reuters.com/business/aerospace-defense/bae-systems-signs-us-army-deal-m777-gun-structures-2024-01-04/ |url-status=live |archive-url=https://web.archive.org/web/20240104124909/https://www.reuters.com/business/aerospace-defense/bae-systems-signs-us-army-deal-m777-gun-structures-2024-01-04/ |archive-date=4 January 2024 |access-date=4 January 2024 |website=Reuters}}</ref>