Lockheed Martin Awarded Contract for F2 Component Work

Released on Monday, April 02, 2007

Lockheed Martin [NYSE: LMT] received a contract from Mitsubishi Heavy Industries (MHI) on March 31 valued at $150 million to manufacture components for five additional F-2 production aircraft. MHI is the prime contractor for the F-2, Japan's operational support fighter.

"Japan selected the Lockheed Martin F-16 multi-role fighter in 1987 as the basis for the joint Japan-U.S. design of a new support fighter for the Japan Air Self Defense Force (JASDF), and Lockheed Martin began delivery of production airframe and avionics components and other F-2 systems to MHI in 1998. We continue to deliver quality products that meet their needs and those of the JASDF," said Jim Shidler, Lockheed Martin F-2 program director. "We have also begun support of MHI as they and the JASDF consider and incorporate specific new systems and weapons onto the F-2 to enhance its operational flexibility and capability."

The Japan Government recently authorized the total production of 94 F-2 aircraft, and this new award to Lockheed Martin brings the total aircraft under contract to 86. Lockheed Martin is producing components for 81 F-2 aircraft from those orders initiated under the 10 previous annual contracts. Under this new contract, the company will provide all of the aft fuselages, wing leading-edge flaps and stores management systems; 80 percent of all left-hand wing boxes; and other avionics and avionics support equipment. Lockheed Martin components are shipped to MHI's Komaki-South facility in Nagoya, Japan, where they are assembled with other components by MHI to form the F-2. MHI delivered the first production aircraft to the Ministry of Defense in September 2000, and has delivered 71 aircraft to date.

Lockheed Martin successfully completed all component deliveries in January 2007 for its ninth annual production contract with MHI. Delivery of major components for the tenth contract, signed last year, began in December 2006. This year's contract, the eleventh, is effective immediately with deliveries scheduled to begin in February 2008. Lockheed Martin has delivered more than 370 major airframe, avionics and avionics support equipment components in this successful partnership with MHI since production deliveries began.