UK headquarters planned for advanced Japanese, British, Italian jet fighter project: sources

TOKYO (Reuters) – Japan, Britain and Italy plan to choose Britain as the site of their next-generation fighter program, four sources in Japan said, putting London at the forefront of a partnership that could expand to include to other nations.

The three countries established the Global Combat Air Program (GCAP) in December after Britain and Japan agreed to merge their combat efforts in a groundbreaking collaboration that aims to field advanced aircraft by the middle of the next decade.

Japan and Britain will dominate the design and manufacturing of the project, and London’s deeper and more recent experience in developing fighter jets will likely give it a leading role in organizing the program, said three of the sources, who have knowledge of internal discussions.

“The headquarters will be in Britain, but for balance reasons, someone from Japan could run it,” said one of the sources, all of whom asked not to be identified due to the sensitivity of the issue.

“Discussion on the headquarters is ongoing and we cannot comment on the location,” Japan’s defense procurement agency said in an email. A development framework for the fighter will be established in the next fiscal year, he added.

“No final decisions have been made on locations and we will not comment on speculation,” a British Ministry of Defense spokesman said.

Italian Defense Ministry officials were not available for comment.

Reuters reported in March that Italy was going to pay around one fifth of the total development cost, which the country’s government dismissed as “speculative.”

OTHER COUNTRIES

On Friday, the head of the Italian aerospace and defense group Leonardo (LDOF.MI) said Saudi Arabia would not be a major partner in the project, after the Financial Times said last month it was pushing to join.

GCAP could welcome the country in a more limited role because it would bring money and a lucrative market to a project expected to cost tens of billions of dollars, the three sources said.

One of its Middle Eastern neighbors, the United Arab Emirates, has also shown interest, they added.

There were talks about possibilities with Saudi Arabia, but no decision was made beyond that, said Richard Berthon, director of Future Combat Air at Britain’s Ministry of Defense. he said at the DSEI arms show in London last week.

“It was made clear in London that it could possibly arrive at a later date,” said an Italian Defense Ministry source, who asked not to be identified because he is not authorized to speak to the media.

The UK’s leading GCAP company is BAE Systems PLC (BAES.L)with Mitsubishi Heavy Industries (7011.T) representing Japan.

European missile maker MBDA will also join the project, along with avionics maker Mitsubishi Electric Corp. (6503.T). Britain’s Rolls-Royce PLC (RROYC.UL), Japan’s IHI Corp (7013.T) and the Italian Avio Aero will work on the engine.

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