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The US Department of Defense and Lockheed Martin have agreed to a 10-year framework covering the production of 850 F-35 fighter jets, as Washington seeks to expand weapons manufacturing and strengthen its defence industrial base, Bloomberg reported.
Announced on Thursday, the agreement does not specify a financial value and remains subject to congressional approval and funding. The Pentagon said the arrangement would help modernise and expand the F-35 programme.
Lockheed Martin Chairman, President and Chief Executive Jim Taiclet said the long-term agreement would help keep the F-35 at the forefront of US and allied air forces over the next decade.
The stealth fighter is a joint programme involving the US and several allied countries. It comes in three variants, with individual aircraft potentially costing more than $100 million. US forces have deployed the jets in combat during the US-Israeli war against Iran.
Michael Duffey, the Pentagon’s top acquisition official, said the agreement would tie financial incentives more closely to manufacturers’ performance, with the aim of speeding up production and increasing output.
Lockheed Martin to invest $7 billion in F-35 programme
Under the arrangement, Lockheed Martin will finance $7 billion in projects related to the F-35 programme, the Pentagon said.
Taiclet said the long-term commitment would give the company greater certainty to invest in production capacity, operational efficiency and a more resilient supply chain.
The agreement covers aircraft production, initial spare parts, modification kits and long-term support, including orders from international customers, Lockheed Martin said.
The company expects long-term pricing and volume discounts to generate billions of dollars in savings. It said the agreement, if approved, would make the programme more predictable and affordable while improving supply chain resilience.
Lockheed Martin estimates that more than 1,375 F-35 aircraft are currently based around the world.
International demand for F-35 fighter jets
The agreement comes as the US seeks to expand the fighter’s international customer base. Last month, Washington announced approval for a proposed $24.3 billion sale of 48 F-35 aircraft to Saudi Arabia.
Turkey, which was removed from the programme in 2019 after purchasing a Russian air-defence system, has expressed confidence that it could regain access to the aircraft. Israel has strongly opposed the prospect of Turkey rejoining the programme.
Lockheed Martin said the F-35 programme is expected to support more than 315,000 jobs and contribute nearly $80 billion to US economic activity over the next decade.
The company said the agreement would provide greater stability for suppliers and strengthen the US defence manufacturing base.
Announced on Thursday, the agreement does not specify a financial value and remains subject to congressional approval and funding. The Pentagon said the arrangement would help modernise and expand the F-35 programme.
Lockheed Martin Chairman, President and Chief Executive Jim Taiclet said the long-term agreement would help keep the F-35 at the forefront of US and allied air forces over the next decade.
The stealth fighter is a joint programme involving the US and several allied countries. It comes in three variants, with individual aircraft potentially costing more than $100 million. US forces have deployed the jets in combat during the US-Israeli war against Iran.
Michael Duffey, the Pentagon’s top acquisition official, said the agreement would tie financial incentives more closely to manufacturers’ performance, with the aim of speeding up production and increasing output.
Lockheed Martin to invest $7 billion in F-35 programme
Under the arrangement, Lockheed Martin will finance $7 billion in projects related to the F-35 programme, the Pentagon said.
Taiclet said the long-term commitment would give the company greater certainty to invest in production capacity, operational efficiency and a more resilient supply chain.
The agreement covers aircraft production, initial spare parts, modification kits and long-term support, including orders from international customers, Lockheed Martin said.
The company expects long-term pricing and volume discounts to generate billions of dollars in savings. It said the agreement, if approved, would make the programme more predictable and affordable while improving supply chain resilience.
Lockheed Martin estimates that more than 1,375 F-35 aircraft are currently based around the world.
International demand for F-35 fighter jets
The agreement comes as the US seeks to expand the fighter’s international customer base. Last month, Washington announced approval for a proposed $24.3 billion sale of 48 F-35 aircraft to Saudi Arabia.
Turkey, which was removed from the programme in 2019 after purchasing a Russian air-defence system, has expressed confidence that it could regain access to the aircraft. Israel has strongly opposed the prospect of Turkey rejoining the programme.
Lockheed Martin said the F-35 programme is expected to support more than 315,000 jobs and contribute nearly $80 billion to US economic activity over the next decade.
The company said the agreement would provide greater stability for suppliers and strengthen the US defence manufacturing base.
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