Lockheed, Raytheon prep for production changes in U.S.-Turkey tiff - CNBC

|About: Lockheed Martin Corporation (LMT)|By:, SA News Editor

Lockheed Martin (NYSE:LMT) and Raytheon (NYSE:RTN) are preparing to make massive adjustments to their production processes as the U.S. tries to pressure Turkey not to follow through with a deal to buy a Russian S-400 missile defense system, CNBC reports.

Turkey faces removal from the F-35 program, forfeiture of 100 promised F-35 jets, cancellation of a Patriot missile deal and the imposition of U.S. sanctions if the deal with Russia is completed; LMT makes the F-35, while RTN produces the Patriot system.

The head of the F-35 program at the Pentagon told a House Armed Services subcommittee hearing today that Turkey's removal would impact the aircraft production rate and strain the jet's intricate global supply chain, noting Turkey produces ~7% of the jet's parts.

"The evaluation of Turkey stopping would be between 50 and 75 airplane impact over a two-year period," Navy Vice Adm. Mat Winter said.

Meanwhile, Turkey Foreign Minister Cavusoglu says the country's purchase of the Russian missile system is a "done deal" and cannot be canceled.

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