Lockheed says F-35 investments will save $1.8 bln by 2019

RAF FAIRFORD, England, July 10 Thu Jul 10, 2014 8:31am EDT

RAF FAIRFORD, England, July 10 (Reuters) - Industry investment of $170 million over the next two years is expected to result in savings of $1.8 billion on the F-35 Joint Strike Fighter program, Lockheed Martin Corp's F-35 program manager Lorraine Martin told reporters on Thursday.

Martin said the savings would cut the cost of each F-35 fighter jet by about $10 million to about $80 million, including an engine.

The Pentagon announced the "Blueprint for Affordability" initiative earlier, noting that Lockheed, the prime contractor for the program, and two main subcontractors, Northrop Grumman Corp and Britain's BAE Systems Plc, would recoup their investment and any profit only after the cost reductions were realized. (Reporting by Andrea Shalal; Editing by Mark Potter)

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