Hanwha Aerospace Co., a defense industry unit of South Korea‘s Hanwha Group, said Wednesday it has signed a $1 billion deal to supply aircraft engine parts to British airplane engine maker Rolls-Royce.
In the contract, Hanwha Aerospace will provide turbine seal segments to Rolls-Royce, the world’s third-largest maker of aircraft engines after General Electric Co., for 25 years starting in 2020, the company said in a statement.
“The deal is a big achievement for the company as turbine seal segments are core components, which will be installed in most of the aircraft engines made by Rolls-Royce,” the statement said.
The turbine parts will be built at Hanwha Aerospace‘s plant in Vietnam and delivered to the British company, the company said.
Hanwha Group, a chemicals-to-finance conglomerate, plans to invest 4 trillion won ($3.5 billion) in the airplane parts and defense industry business by 2022.
Last month, Hanwha Aerospace completed the process to acquire a 100 percent stake in US engine parts maker EDAC Technologies Corp. headquartered in Cheshire, Connecticut, for $300 million. (Yonhap)