Tuesday, October 1, 2013
Defense Ministry Awards F-35 Contracts To 3 Firms
TOKYO (Nikkei)--Three major domestic defense contractors have inked contracts with the Ministry of Defense for production associated with the new F-35 stealth fighter.
The ministry announced that Mitsubishi Heavy Industries Ltd. (7011) has a contract worth 63.3 billion yen for final fuselage assembly and inspection. IHI Corp. (7013) has a contract to manufacture engine parts for 18.2 billion yen. Mitsubishi Electric Corp. (6503) has a deal valued at 5.6 billion yen to manufacture radar components.
In the fiscal 2013 budget, expenses related to the F-35 total 133.2 billion yen, a little lower than the 133.9 billion yen projected.
The Defense Ministry announced a unit cost of around 14 billion yen per aircraft for the two F-35s for which purchase funds were allocated in the fiscal 2013 budget. Four finished F-35s were bought from the U.S. in fiscal 2012 at just 10.2 billion yen apiece, but costs increase when domestic companies are involved in manufacturing.
(The Nikkei, Oct. 1 morning edition)