S.Korea's KAI signs $105 mn deal to supply parts for Boeing aircraft

Korea Aerospace Industries Ltd. (KAI), the country’s military aircraft manufacturer, said on Tuesday it has signed a deal to produce and supply $105 million worth of plane parts to the Boeing Company between 2023 and 2030.   

The South Korean aircraft maker will provide 14 types of components for landing, including struts and pivots that can withstand external pressure and support the weight of the aircraft. The parts will be used for the US aircraft giant’s B767, B767-2C, B777, B777X and B787 models.

This marks KAI's second order from Boeing after it signed a deal worth 120 billion won ($90.6 million) in 2021 to provide parts for Boeing's 787 Dreamliner.

The Korean aircraft maker is set to participate in the Avalon 2023 & Air Show in Melbourne, Australia to accelerate exports of its fighter jets to Oceania. The company will showcase the technology of its fighter jets FA-50 and KF-21 as well as the Korean Army's light-armed helicopter (LAH).

KAI will operate a simulator of the T-50 Golden Eagle, a supersonic advanced jet, alongside US aerospace giant Lockheed Martin Corp. at the event to promote the aircraft to the Australian Defence Force.

The Korean company and Lockheed entered a partnership agreement last year to join in the race for a US megaproject set to order 500 jet trainers for the US Air Force and Navy between 2024 and 2025.

KAI aims to achieve 3.83 trillion won in revenue this year, up 37% from 2022, driven by sales of advanced fighter jets. Last week, the company signed a deal to sell 18 FA-50 light fighter jets to Malaysia's Ministry of Defense for 1.2 trillion won.

Write to Ik-Hwan Kim at lovepen@hankyung.com


Jihyun Kim edited this article.