KAI signs 140 bln-won engine parts supply deal with Collins Aerospace

SEOUL, June 27 (Yonhap) -- Korea Aerospace Industries Co. (KAI), South Korea's sole aircraft manufacturer, said Friday it has signed a 140 billion-won (US$103.3 million) contract with Collins Aerospace to supply engine components for Airbus aircraft. Under the agreement, KAI will supply engine nacelle components for Airbus A350 and A320 NEO aircraft over a 10-year period starting in 2027 to Collins, one of the world's largest suppliers of aerospace and defense products, according to KAI. An engine nacelle is a cover that houses and protects a jet engine. It not only shields the engine but also enhances aircraft efficiency by improving airflow and reducing noise. The contract follows a deal signed in 2023, valued at 34.7 billion won, under which the South Korean company produces and supplies machined parts for engine nacelles used in B787, A320 NEO and A220 aircraft. KAI said the latest agreement will help expand its presence in the commercial aircraft component sector. "In addition to military aircraft projects, such as the KF-21, FA-50 and Surion, KAI's technical capabilities in the commercial aircraft structural component sector are also gaining global recognition," a company official said. "As the commercial aircraft business continues to grow, we plan to develop this sector into one of KAI's core businesses." Korea Aerospace Industries Co.'s headquarters in Sacheon, about 300 kilometers southeast of Seoul, is seen in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap) brk@yna.co.kr(END)

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SEOUL, June 27 (Yonhap) — Korea Aerospace Industries Co. (KAI), South Korea’s sole aircraft manufacturer, said Friday it has signed a 140 billion-won (US$103.3 million) contract with Collins Aerospace to supply engine components for Airbus aircraft.

Under the agreement, KAI will supply engine nacelle components for Airbus A350 and A320 NEO aircraft over a 10-year period starting in 2027 to Collins, one of the world’s largest suppliers of aerospace and defense products, according to KAI.

An engine nacelle is a cover that houses and protects a jet engine. It not only shields the engine but also enhances aircraft efficiency by improving airflow and reducing noise.

The contract follows a deal signed in 2023, valued at 34.7 billion won, under which the South Korean company produces and supplies machined parts for engine nacelles used in B787, A320 NEO and A220 aircraft.

KAI said the latest agreement will help expand its presence in the commercial aircraft component sector.

“In addition to military aircraft projects, such as the KF-21, FA-50 and Surion, KAI’s technical capabilities in the commercial aircraft structural component sector are also gaining global recognition,” a company official said. “As the commercial aircraft business continues to grow, we plan to develop this sector into one of KAI’s core businesses.”