LOCKHEED EXPECTS soon to conclude the first co-production contract with Taiwan for the manufacture of F-16 fighter airframe components, as part of wider offset package attached to the 1992 sale of 150 aircraft.
The contract, estimated to be worth up to $40 million, will cover the production of seven components, consisting of the F-16's air inlet, two engine-access doors, ventral fin, centre and underwing inboard fuel pylons and launcher adapter for the AIM-9 Sidewinder air-to-air missile.
Component co-production will cover aircraft purchased by Taiwan and F-16s on order for other countries. Lockheed hopes to finalise a deal before the end of January, according to local industry sources. Work will be subcontracted to different Taiwanese manufactures, by a single Taiwanese prime contractor, expected to be the state-owned Aero Industry Development Centre.
Taiwan's Ministry for Economic Affairs has in return agreed to invest an initial $10 million to upgrade local aerospace-industry capability with new equipment and training. Additional funding is expected from the private sector.
The co-production deal is part of a wider, $600 million, F-16 offset agreement signed in July 1993. Other areas include the establishment of an F-16 maintenance and overhaul site in Taiwan and technical-training and environmental- protection programmes.
Taiwan's first operational squadron of 20 Ching-Kuo Indigenous Defence Fighters (IDF) entered service on 28 December at Ching Chuan Kang air base. The air force has ordered a total of 130 IDFs from state-owned manufacturer Aero Industry Development Centre for delivery by late 1997.
Source: Flight International
