Lockheed Martin and Raytheon prepare big production changes amid US dispute with Turkey over Russian arms deal
WASHINGTON — American defense firms Lockheed Martin and Raytheon are preparing to make massive adjustments to their production processes as the U.S. tries to pressure Turkey not to follow through with a multibillion-dollar deal to buy a Russian missile system, according to multiple people familiar with the matter.
"The ball is very much in their court," a U.S. defense official familiar with the matter told CNBC."There is a lot to lose on the line and Turkey should know that these aren't idle threats." For Lockheed Martin, the adjustments include replacing Turkey's role in manufacturing elements for the F-35's fuselage and landing gear. Therefore, a new supplier would have to take over making those specific jet components. Additionally, the 100 F-35 jets Turkey hoped to add to its budding arsenal will be shuffled in the company's intricate production schedule as to ensure the defense giant's assembly line will hum along without skipping a beat.
"From a timeline we would see within 45 to 90 days an impact of the slowing down or stopping of those parts to the three production lines," Winter said, adding that Turkey produces approximately 7 percent of the jet's parts. The assessment included satellite imagery of a concrete launch facility as well as bunkers, according to the source, who spoke on the condition of anonymity. The new construction fits the pattern for Russia's S-400 surface-to-air missile system, the source indicated.
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