Lockheed details $1.8bn industrial offset package for Peru's F-16 deal

Lockheed Martin has laid out an industrial offset package tied to Peru's acquisition of F-16 Block 70 fighter jets, which the company values at $1.8 billion. The package is meant to support Peru's domestic aerospace sector through co-production of defence equipment and unmanned aerial vehicles, engineering training programs, and a new space academy curriculum.

Proposed projects, according to Lockheed, include joint research hubs and advanced engineering and fighter-maintenance training courses, along with initiatives to improve Peru's aircraft maintenance, repair and overhaul capabilities. A company representative from its Integrated Fighter Group said the arrangement builds a skilled workforce and strengthens industrial ties between Peru, the United States and other partner nations.

The announcement comes a week after L3Harris confirmed it will supply Peru with the Viper Shield electronic warfare system, which equips the F-16 Block 70 variant.

The fighter purchase has followed a complicated political path. In April, the US ambassador to Peru said Lima had chosen the F-16, though the decision faced some domestic opposition at the time, coming as it did under an interim government. Peru's current president, Keiko Fujimori, took over the acquisition process after assuming office in July.

In September 2025, the United States had outlined a possible $3.4 billion Foreign Military Sales package for Peru covering ten single-seat F-16C jets and two F-16D trainer variants. Peru's broader requirement calls for 24 aircraft in total, though. That means further contracts will be needed to meet that goal.