RAF FAIRFORD England (Reuters) - Industry investment of $170 million (99.36 million pounds) over the next two years is expected to result in savings of $1.8 billion on the F-35 Joint Strike Fighter programme, Lockheed Martin Corp's (>> Lockheed Martin Corporation) F-35 programme manager Lorraine Martin told reporters on Thursday.

Martin said the savings would cut the cost of each F-35 fighter jet by about $10 million to about $80 million, including an engine.

The Pentagon announced the "Blueprint for Affordability" initiative earlier, noting that Lockheed, the prime contractor for the programme, and two main subcontractors, Northrop Grumman Corp (>> Northrop Grumman Corporation) and Britain's BAE Systems Plc (>> BAE Systems plc), would recoup their investment and any profit only after the cost reductions were realized.

(Reporting by Andrea Shalal; Editing by Mark Potter)