Lockheed Martin Could Move Work On F-35 Fighter Jet Away From Canada

Lockheed Martin Corporation LMT is reportedly considering whether to move work on its multi-billion-dollar F-35 fighter jet away from Canada, as uncertainty regarding the country’s purchase of said jet lingers. Canadian media recently said the government was thinking about placing an order for the competing 18E/F fighter jets made by Boeing Co BA instead.

Lockheed’s vice president, Jack Crisler, told Reuters that moving production would not be a punitive measure, but a result of pressures from other partner countries that have placed definite orders, or increased orders to get more work shifted to their companies, which want a piece of the development and production work, that will leave about $1 billion in Canada by the end of 2016.

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While a spokeswoman for Canada's Defense Ministry assured the reports were inaccurate, she provided no further information. In addition, Crisler said his company had not been able to set a meeting with the country’s government to discuss the issue.

Who’s Getting A Piece Of The Pie

The supply chain of Lockheed’s F-35 fighter is divided among nine countries: The United States, Britain, Canada, Turkey, Italy, Norway, the Netherlands, Australia and Denmark — which confirmed on Thursday the purchase of 27 F-35A stealth fighters for more than $3 billion. According to the company, contracts have been competitively awarded, trying to keep a proportion with the purchase plans of each of the partner countries, who also helped fund the jet’s development.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.