Italy, Turkey to service F-35 jet, engine in Europe -Pentagon

(Adds comments by Lockheed, Pratt)

By Andrea Shalal

WASHINGTON, Dec (Shanghai: 600875.SS - news) 11 (Reuters) - Italy and Turkey will provide initial heavy maintenance of Lockheed Martin Corp's F-35 fighter jet and its engine in Europe from 2018, the Pentagon said on Thursday, paving the way for billions of dollars in work for companies in the two countries.

The move reflects the growing maturity of the $399 billion weapons program, with over 120 jets already produced and U.S. and foreign militaries gearing up to start operating the jets around the world in coming years.

Air Force Lieutenant General Chris Bogdan, the Pentagon's F-35 program manager, told reporters the decisions came after months of reviews and site visits, and were based on "best value" and factors such as location and projected F-35 basing.

Bogdan said Italy would do initial heavy maintenance of the jets, which covers structural work on the airframe and significant engine repairs. Britain will provide backup if Italy's F-35 production facility was needed to build more jets than currently planned, he added.

Heavy maintenance of the F135 engines that power the supersonic F-35 would be done in Turkey, but Norway and the Netherlands would set up similar sites in two to three years, given the high cost of equipment required for testing, he said.

The engines are built by Pratt & Whitney, a unit of United Technologies Corp, which said it would work closely with all three countries to establish affordable, world-class depots.

Lockheed said it would support the countries as they built up their maintenance capabilities.

Bogdan said U.S. maintenance sites were already being set up, and sites in Asia would be named next week. Being able to do heavy maintenance in all three regions will allow commanders to base the jets wherever needed, while ensuring access to repairs.

Next (Other OTC: NXGPF - news) year, he said the program would look at components, warehousing, and other elements required for servicing a global fleet of jets that could reach 3,100.

Bogdan underscored that other countries buying the jet could bid for additional maintenance in coming years.

The total value of maintenance work on the new warplanes could amount to "hundreds of billions of dollars" over the next 50 years, Bogdan said, given Pentagon estimates that it will cost the U.S. military over $1 trillion to operate and maintain the 2,457 jets that it plans to buy over that time.

Lockheed is developing three variants of the F-35 for the U.S. military and eight partners that funded its development: Britain, Australia, Italy, Norway, Turkey, the Netherlands, Denmark and Canada. Israel, Japan and South Korea have also placed orders for the planes.

The Marine Corps plans to start initial combat use of the planes in July 2015, with the Air Force following suit in 2016.

In Italy, much of the work will be done by Finmeccanica SpA's Alenia, which manages a $1 billion-plus government-owned final assembly and checkout facility in Cameri.

The news cements Italy's commitment to the F-35 program at a time when some lawmakers have suggested further cuts in Italy's F-35 orders, which were already whittled back to 90 jets from 131 several years ago.

John Phillips, the U.S. ambassador to Italy, told reporters in Rome that the decision would "provide a very substantial economic benefit for Italy for decades into the future."

Mauro Moretti, Finmeccanica CEO, said the work would add a large number of jobs and other economic benefits. He said the firm was also vying for F-35 avionics and other components.

Norway also welcomed the news and said the work in its country would be done by AIM Norway, a state-owned company.

In Turkey, the work is likely to be done by Turkish Aerospace Industries, sources familiar with the matter said.

No comments were immediately available from Britain or the Netherlands. (Additional reporting by Isla Binnie and Danilo Masoni in Italy; Editing by Alden Bentley and Andrew Hay)