Hanwha Aerospace wins $1.0 bln deal from Rolls-Royce to provide engine parts
SEOUL, AJU - Hanwha Aerospace, a subsidiary of Hanwha Group, won a $1.0 billion contract from Rolls-Royce, a British aircraft engine manufacturer, to provide parts for “Trent” engines that would be produced for at least 25 years from 2021.
The Rolls-Royce Trent is a family of high-bypass turbofans. Hanwha Aerospace said Wednesday that its supply volume may be further expanded, with its Vietnamese subsidiary in charge of supplying parts. In December last year, Hanwha opened its new facility near Hanoi.
In an effort to diversify its portfolio, Hanwha Aerospace changed its name from Hanwha Techwin in 2018 and expanded its business scope from engine cases to turbine parts. The deal with Rolls-Royce would help Hanwha Airspace to establish itself as a sure partner for Rolls-Royce in the aircraft engine manufacturing market which maintains high entry barriers.
In June, Hanwha Aerospace agreed to acquire EDAC Technologies Holding Company, which owns EDAC Technologies, an American company that provides parts to major aircraft engine makers. Through the acquisition of EDAC, Hanwha hopes to establish a business platform in the U.S. and grow in the risk-sharing partnership (RSP) field.
Top engine parts companies are eligible for RSP which distributes costs and revenue incurred during the development and sales of an aircraft engine in accordance with a participating party's share.
Hanwha Aerospace signed a contract with Pratt & Whitney, an American aerospace manufacturer, in 2015, to participate in an engine development project previously known as the Geared Turbofan (GTF). The engine is expected to deliver reductions in fuel use and ground noise when used in next-generation aircraft.
In December last year, Hanwha Aerospace opened its new facility near Hanoi.