Lockheed Martin, Pentagon Reach Framework Deal for 850 F-35s
Article excerpt
U.S. defense contractor Lockheed Martin has reached a framework agreement with the U.S. Defense Department to supply 850 F-35 stealth fighter jets over the next decade. The jets alone are worth at least $78.2 billion (about 103.65 trillion won), making it one of the largest arms programs ever. With geopolitical tensions driving demand for advanced weapons, Lockheed Martin also raised its full-year revenue and profit outlook. Reuters reported on the 22nd that Lockheed Martin and the U.S. Defense Department announced a framework agreement covering long-term production and sustainment of the F-35 Lightning II. The agreement covers 850 jets for the United States along with orders from overseas customers, initial spare parts, upgrade equipment and maintenance support. On that basis, Lockheed Martin and the Pentagon plan to keep F-35 output for U.S. and overseas customers at about 156 aircraft a year. A formal purchase contract has not yet been signed. Specific pricing and delivery schedules will be set once Congress approves a multiyear contract and secures funding. The $78.2 billion figure is a minimum estimate, based on multiplying 850 jets by $92 million (about 121.9 billion won), the unit price of the cheapest variant. The F-35B, a short-takeoff and vertical-landing version for the Marine Corps, costs $121 million (about 160.4 billion won) per aircraft, while the Navy's F-35C...
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The money will go toward expanding production facilities and the parts supply chain, as well as strengthening maintenance facilities and specialized staffing.
