GKN announces £1bn worth of aerospace deals
Jul 20 2010 by Graeme Brown, Birmingham Post
Worcestershire engineering firm GKN has revealed almost £1 billion worth of contracts – including a deal to supply parts for a new Airbus aeroplane.
The Redditch company will supply aluminum and titanium components to Rolls-Royce and General Electric, to go towards making the new 350 XWB plane.
GKN Aerospace is already contracted to provide the rear spars and fixed trailing edge assemblies for the A350 XWB wings – also complex composite structures.
The company has also announced contract wins with with Bombardier and a deal to supply to the Lockheed Martin F35 Lightning II aircraft earlier this year.
Marcus Bryson, chief executive of GKN Aerospace, said the contracts would see development and production work continue through the next decade and beyond.
He said: “These wins demonstrate our success in growing the company to a size and scale that enables us to contribute as an effective long term programme partner for both the airframe and engine primes.
“This will support our growth objectives in the future.”
The agreement reached with Rolls-Royce is worth £196.5 million and was announced by the company at the Farnborough Air Show.
The deal will see GKN make complex critical engine structures over the next decade for the Trent 700 and 1000 engines.
Mike Beck, president of engine structures at GKN Aerospace, said: “GKN Aerospace has the size and strength to offer customers such as Rolls-Royce in-depth technological expertise combined with financial stability and strength.
“We are able to invest and work alongside our customers to support current and future programmes and opportunities for the long term.”
The company will also earn £235.8 million from a deal with Pratt and Whitney to make titanium engine ducts for the F135 engine for the Joint Strike Fighter aircraft over the next 10 years.
The £196.5 million five-year deal with GE Aviation to supply components for both Boeing and Airbus aircraft.
GKN, which employs more than 38,000 people in more than 30 countries, turned over £4.5 billion last year, after seeing sales fall by three per cent.
However, its aerospace division performed strongly, with sales up 48 per cent and trading profits up by 61 per cent to £169 million.
