UPDATE 1-EADS unit Cassidian eyes new markets for growth

* To increase investments in India, Brazil, Middle East

* Says Turkey offers to join Talarion drone project

(Adds detail, comment)

MUNICH, March 28 (Reuters) – The military arm of European
aerospace and defence group EADS (EAD.PA: Quote, Profile, Research) will increase
investment in the fast-growing markets of India, Brazil and the
Middle East to make up for lagging growth in Europe.

“It’s not that business in the home markets is disappearing,
it’s just not growing,” Chief Executive Officer of EADS’
Cassidian unit, Stefan Zoller, said on Monday.

He said the group aimed to double sales from around 6
billion euros ($8.4 billion) by 2020, with 60 percent of sales
coming from new markets by then.

India is looking to spend up to $50 billion over the next
five years to modernise its armed forces, including $11 billion
on fighter jets. Cassidian is bidding for the fighter award
along with companies such as Boeing (BA.N: Quote, Profile, Research) and Lockheed Martin
(LMT.N: Quote, Profile, Research).

In Europe, Cassidian faces competition to its unmanned spy
plane project, Talarion, from a rival drone planned by Britain’s
BAE Systems (BAES.L: Quote, Profile, Research) and Dassault Aviation (AVMD.PA: Quote, Profile, Research) of France.

Cassidian said it had asked Spain, France and Germany for
300 million euros in total for a prototype that would fly in
2013 or 2014, but financial commitments were not yet in place.

Zoller added that Turkey had offered to join the programme,
although this will need to be approved by the other three
states.

Industry experts have warned that Europe needs to cooperate
on building unmanned military aircraft or risk falling behind in
their development. [ID:nLDE71E1LV]

BAE and Dassault were nudged into working together on their
initiative after Britain and France signed a major defence
cooperation pact in November. [ID:nLDE72D156]
(Reporting by Jens Hack; Writing by Victoria Bryan; Editing by
David Cowell)
($1=.7117 Euro)

UPDATE 1-EADS unit Cassidian eyes new markets for growth