Hanwha Aerospace in $320 mn deal to supply aircraft engine parts to GE

Hanwha Aerospace Co., a unit of South Korean conglomerate Hanwha Group, has won a $320 million deal to supply aircraft engine parts to General Electric Co.

In a four-year deal from 2023 to 2026, Hanwha Aerospace will supply 72 kinds of airplane engine parts to the US company for the GEnx, GE90 and LM2500 engines, the Korean company said in a statement on May 25.

“This deal recognizes 40 years of our technological leadership and quality of products as well as the strategic partnership with GE,” said a Hanwha official.

Started out as a gas turbine engine repair and maintenance company in 1979, Hanwha Aerospace has expanded its business scope to aircraft engines and components, producing more than 9,000 engines since its launch.

The company is supplying engine parts to the world’s three major aircraft engine manufacturers – US-based Pratt & Whitney (P&W) and GE as well as Britain’s Rolls-Royce.

After obtaining a risk-sharing partnership (RSP) from P&W in 2015, Hanwha Aerospace has won a series of orders from the global engine manufacturers.

In 2019, it won a $1.7 billion deal to supply GTF engine parts to P&W. The company has also clinched supply contracts with Rolls-Royce and GE worth $1 billion and $300 million, respectively.

ORDER BACKLOG AT OVER $21 BILLION

Hanwha Aerospace has an engine parts order backlog worth about 24 trillion won ($21.4 billion) as of May.

Earlier this year, Hanwha said it was certified to conduct the quality checks on aircraft engine parts it supplies to Rolls-Royce, becoming the first partner company of the UK firm to achieve the highest level of the Production Part Approval Process (PPAP) certification.

The certification allows Hanwha to inspect and approve on its own the quality of engine parts it develops before moving to the mass production stage for the UK aircraft engine maker

“We expect improving air industry business conditions and higher demand for aircraft engines in line with the increase in (COVID-19) vaccinations globally,” said a Hanwha official.

Write to Jae-Kwang Ahn at ahnjk@hankyung.com
In-Soo Nam edited this article.