Report: Mitsubishi Heavy, BAE Discuss F-35 Parts Deal

F35Japan-based Mitsubishi Heavy Industries is negotiating with BAE Systems the terms of a potential contract, where Mitsubishi Heavy would supply components for Lockheed Martin‘s (NYSE: LMT) F-35 aircraft, Reuters reported Monday.

Tim Kelly writes the progress of that agreement depends on the decision of Japan’s government on whether to subsidize production of parts for the F-35’s rear fuselage.

BAE and Mitsubishi Heavy are discussing terms of work and technology to be transferred should a deal be reached, according to the report.

BAE builds the jet’s rear fuselage, which is designed to use an anti-detection technology during flight, the report says.

Kelly writes the Defense Department could spend $392 billion for the development of 2, 443 F-35 jets and international orders for the F-35 could raise the total fleet number beyond 3, 000.

Mitsubishi Heavy is already building 42 F-35 aircraft for Japan’s military under a contract worth more than $620 million, Reuters reports.

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