Incheon International Airport said Monday it has signed a deal to produce freighters converted from passenger aircraft for the state-run Israel Aerospace Industries, after winning in a competition over China, India and Singapore.

By 2079, the airport aims to ramp up its export volume by $12 billion, starting with modifying retired Boeing B777 airplanes as cargo transportation aircraft in 2025. It plans to expand its production capacity to convert eight large passenger planes simultaneously -- including Airbus A330 models -- to freighters by 2030.

Incheon Airport CEO Kim Kyung-wook, Israel Aerospace Industries CEO Yaacov Berkovitz, Sharp Technics CEO Baek Sun-seok and other officials participated in the signing ceremony earlier in the day.

Following the contract, Sharp Technics, a local aviation maintenance company, will set up a joint venture called IKCS with IAI and carry out the passenger-to-freighter conversion business at the world’s fourth best airport.

The modified cargo transportation aircraft will be exported to global full-service carriers, aircraft lease providers and logistics companies including Atlas, DHL, FedEx and UPS.

The parts and components needed to transform the aircraft, which take up more than 58 percent of their total cost, will be provided from local regions such as Sacheon, South Gyeongsang Province. The new business is also expected to create around 1,800 new jobs in the cited period, solidifying a win-win partnership with the local community, the company said.

As the South Korean company receives the transfer of conversion technology from IAI, the most advanced level of technology used in airframe MRO (maintenance, repair and overhaul), it will create growth momentum for the country’s air industry, it added.

“Based on its competitive edge in air transportation infrastructure, Incheon Airport will seal deals with global MRO companies and bring South Korean air industry’s export capacity to the next level,” said Kim.

In Dec. 2022, Incheon Airport partnered up with the US-based Atlas Air to set up an MRO hub at the airport, providing maintenance services for the leading air carrier’s wide-body cargo airplanes. The facility is slated for operation starting from 2026.

According to data from Boeing, the number of freighters in the global market is expected to surge by 79.6 percent from 2,010 units in 2019 to 3,610 units in 2041, of which the converted cargo air carriers will account for 66.4 percent.