A$2 billion F-35 JSF contracts at risk

Australia is set to lose A$2 billion worth of hi-tech contracts as local companies and governments are reluctant to join the global supply chain for a new-generation fighter plane. American giant Lockheed Martin this week will send out executives from its headquarters in Texas in a last-ditch attempt to find Australian firms willing to manufacture composite skins and other parts for the massive F-35 Joint Strike Fighter (JSF) program. The Government has refused to assist companies wanting to join the JSF project. Senior Australian industry sources said there was a deep mistrust of defence companies within the departments of defence and industry, so ministers were not getting the full story. "Unfortunately, the Government is not seeing the big picture in terms of hi-tech manufacturing skills," one key player said. "It is enormously embarrassing how we are looking a gift horse in the mouth". Taxpayers will spend A$16 billion to buy up to 100 of the new generation stealth fighters. Prime contractor Lockheed wants local firms involved in aspects of construction. Those include composite skins, assembly of vertical tail fins, machining metal parts and electronics – creating hundreds of jobs. The potential through-life value for Australia in support contracts is up to $9 billion with more than 2000 technical and engineering jobs.