BEN-GURION AIRPORT, ISRAEL — Touted by US and Israeli officials as a new milestone in decades-long defense-industrial cooperation, state-owned Israel Aerospace Industry (IAI) inaugurated a production line Tuesday to provide wings for Lockheed Martin-produced F-35 joint strike fighters.
Under an estimated $2.5 billion industrial cooperation deal, the new facility at IAI's Lahav Division will produce up to 811 wing sets through 2030 at a rate of four per month.
Current plans are earmarking Israeli-built wings for fighters on order for the US Air Force, the Israeli Air Force and future export customers, industry executives here say. Work has already begun, with the first Israeli-built wings planned for delivery to Lockheed by the middle of next year.
The deal constitutes a major portion of $4 billion in Lockheed-pledged work to Israeli industry stemming from Israel's 2010 decision to procure its first F-35 squadron. MoD expects the pledged buyback package to grow to $5 billion from projected follow-on orders to the 44 aircraft already approved.
Patrick Dewar, Lockheed Martin International executive vice president, said the decision to entrust IAI with critical wing builds follows three decades of successful cooperation on the F-16 and T-38 programs.
He noted that Lockheed nearly doubled the $1 billion in pledged F-16I buyback "because IAI builds the best product and we choose to take them with us."
The latest deal, he said, takes strategic cooperation to a new level and launches "a new era in our shared commitment" to supporting air forces of both countries.
Echoing that theme, US Lt. Gen. Christopher Bogdan, the Pentagon's chief executive for the F-35 program, said the fighter will be a strategic asset for the US and Israeli air forces for years to come.
He said initial talks are underway for bringing Israel into his proposed block buy plan, where both countries would reap economy of scale savings from multiyear buys.
IAI is now negotiating low-rate production for Lots 9 and 10, which all sides hope to bundle into one order.
"Every plane on order helps reduce costs. We'll have to wait and see whether Israeli regulations and procedures will allow it," Bogdan said.
While Lockheed estimates F-35 unit costs at $115 million, Bogdan pegged the flyaway price at $95 million. And by 2019, he said, unit costs should drop below $85 million.
"And that includes engine and profit for Lockheed and its team," he said.
IAI Chairman Rafi Maor said the firm invested tens of millions of dollars in the infrastructure, automatic tooling and advanced production technologies demanded by Lockheed and F-35 program officials. He noted that wings and major assemblies built by IAI for Lockheed's F-16 program have been proven in more than 1 million operational flight hours.
The new facility, said Maor, will establish IAI as a global center of excellence for wing production.
"The Israel Air Force will be one of the first nations to fly the F-35, and we're proud to be a major supplier," said Maor, a retired Israel Air Force officer.
Yaacov Rozmann, acting general manager and director of operations for the Lahav Division, said IAI was ready to inaugurate the new line last summer, but those plans were pre-empted by war in Gaza.
When asked about the thousands of Gaza-launched rockets capable of striking the new facility, Susan Ouzts, Lockheed's F-35 international program director, said she was not concerned.
"IAI has always proved to be a reliable supplier delivering highest-quality product according to schedule. I'm sure they'll do what they have to do to get the job done," she said.
The event was initially planned as a modest industry gathering to be headlined by Bogdan. His role was eclipsed by last-minute participation by Israel Defense Minister Moshe Ya'alon and Dan Shapiro, Washington's Israel ambassador.
Given protracted policy disputes and growing tension between US President Barack Obama and Israeli Prime Minister Benjamin Netanyahu, the event provided a platform for flagging unwavering ties binding the two countries.
"I'm continuously amazed by how strong the connections are between defense industries and our military establishments. Now is the time to say loud and clear that no dispute can undermine this relationship. No disagreement can diminish our gratitude," Ya'alon said.
Ya'alon said Israel-built wings for the F-35 along with the selection of Elbit Systems for helmet-mounted displays are a show of strength and another sign of growing strategic ties.
"If we won't be absolutely the best, most advanced and most sophisticated, we simply won't be. This is the secret of our existence," he said.
"This cooperation is the latest in a long line of strategic ties binding our countries," said Shapiro, Washington's top in-country diplomat. â–
