BETHESDA (dpa-AFX) - Lockheed Martin Corporation (LMT), a U.S. aerospace and defense company, said Thursday it has reached a framework agreement with the Department of War for the production and maintenance of F-35 fighter jets, covering 850 U.S. aircraft over 10 years.
The agreement also covers spare parts, modification kits and maintenance support for 10 years, along with orders from international customers for aircraft in Lots 21-30. Production is expected to continue at 156 aircraft per year.
Lockheed Martin said if multiyear procurement authority and related funding are approved in the coming months, the company and the F-35 Joint Program Office will finalize contract terms, pricing and delivery schedules. The arrangement is expected to save billions of dollars over the aircraft's lifecycle through long-term pricing and volume discounts.
The company said the plan is expected to support 317,000 U.S. jobs and generate about $79 billion in annual economic activity over the next decade. It is also intended to strengthen the supply chain, reduce parts delays and improve aircraft readiness.
Lockheed Martin said more than 1,375 F-35 aircraft are currently in service worldwide, with the fleet having logged more than one million flight hours.
'This multiyear framework strengthens the way we can plan and invest in the F-35 enterprise,' said Lockheed Martin Chairman, President and CEO Jim Taiclet. 'With the greater certainty that comes from the U.S. government's transformative approach to F-35 production and sustainment, we can make the upfront investments needed to expand capacity, improve efficiency, and build a more resilient supply chain.'
In pre-market trading on the NYSE, Lockheed Martin shares were up 1.85% after closing at $551.51 on Wednesday.
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