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* Plans to phase in F-35 from 2027 onwards
* Ties non-NATO Finland closer to the alliance
* Lockheed chosen ahead of Boeing and Saab among others
(Adds Saab, Dassault reactions)
By Essi Lehto and Mike Stone
HELSINKI/WASHINGTON, Dec 10 (Reuters) - Finland has chosen
U.S. defence giant Lockheed Martin's F-35 fighters to
replace ageing F/A-18 combat jets and plans to order 64 planes
with weapons systems in a $9.4 billion deal, the government said
on Friday.
Lockheed Martin competed in a tender for the deal with
Sweden's Saab, U.S. rival Boeing, France's
Dassault and Britain's BAE Systems.
The procurement from Lockheed, including weapons as well as
service and maintenance until 2030, is estimated to cost 8.378
billion euros ($9.44 billion), the government said.
The construction of hangars and other equipment will add a
further 777 million euros, and 824 million euros will be
reserved for the final optimised weapons package and to control
future contract amendments, it added.
"When comparing military performance, the F-35 best met our
needs," Defence Minister Antti Kaikkonen told a news conference.
Military planemakers have been vying for the deal since late
2015, when the Finnish defence ministry began the search for a
new jet to replace Finland's old Hornet fighter bought in 1992
from McDonnell Douglas, now part of Boeing.
Finland is the 14th nation to opt for the F-35. It will
begin phasing in the F-35 from 2027 onwards, said Airforce
Commander Pasi Jokinen.
The choice strengthens the small Nordic nation's defence
cooperation with its allies, most significantly the United
States and Norway, said researcher Charly Salonius-Pasternak at
the Finnish Institute of International Affairs.
"Finland and Norway already train together in the north so
it will be a political decision to determine what intelligence
is shared and when," he told Reuters, referring to the potential
for the jets to share data in real time.
Unlike Norway, Finland is not a member of the North Atlantic
Treaty Organisation (NATO) but it has forged stronger ties with
the organisation in recent years and chosen military equipment
compatible with NATO members.
In 2014 Finland and Sweden, which is also not a NATO member,
signed an agreement to train together and allow NATO assistance
in crisis situations.
"The F-35 will provide Finnish industries unique digital
capabilities that leverage 5th generation engineering and
manufacturing," said Bridget Lauderdale, Lockheed Martin's vice
president and general manager of the F-35 programme.
"The production work will continue for more than 20 years,
and the F-35 sustainment work will continue into the 2070s,"
Lauderdale said in a statement.
Rival jetmakers expressed their disappointment with
Finland's decision with Saab Chief Executive Michael Johansson
saying he was somewhat surprised the F-35 had fallen within
budget.
France's Dassault said said the choice of a U.S. aircraft
was regrettable.
"Once again, we notice and regret an American preference
prevailing in Europe," Dassault said in a statement.
Boeing said it still sees significant international interest
in its F/A-18 Block III Super Hornet and EA-18G Growler.
Sweden, a neighbour to Finland and home to Gripen maker
Saab, said it regretted the outcome while also respecting the
decision.
"Our excellent defence cooperation will of course continue.
Finland will continue to be our closest security and defence
policy partner," Sweden's Ministry of Defence said in a
statement.
Reuters reported earlier on Friday that Lockheed Martin was
set to win the contract.
($1 = 0.8871 euros)
(Reporting by Essi Lehto in Helsinki, Mike Stone in Washington,
additional reporting by Johan Ahlander and Helena Soderpalm in
Stockholm
Editing by Tim Hepher, Terje Solsvik, David Goodman, Susan
Fenton and Raissa Kasolowsky)
