Aerospace Industrial Development Corp (AIDC, 漢翔航空) shares yesterday soared 10 percent, the maximum daily increase allowed on the Taiwan Stock Exchange, after the company on Tuesday announced that it had secured orders of more than NT$35 billion (US$1.15 billion) to provide engine components to GE Aerospace Inc.
The 10-year contract with US-based GE Aerospace was the Taiwanese company’s first long-term order after the recovery of air transportation in the wake of the COVID-19 pandemic, AIDC said in a statement.
AIDC, a maker of military and civil aviation products, would manufacture central structural components for GE Aerospace’s LEAP turbine engines, the company said.
Photo courtesy of Aerospace Industrial Development Corp via CNA
LEAP engines power Airbus SE’s A320neo and Boeing Co’s 737 MAX aircrafts.
AIDC in 2018 signed contracts with GE Aerospace to manufacture 17 LEAP engine components.
The new contract is to take effect in 2026 and run until 2035, the company said, adding that it expects the deal to help generate steady, significant revenue.
Prices under the contract are adjustable to take into account inflation and the results of follow-up negotiations, it said.
AIDC said the aerospace industry’s outlook is rosy, adding that the GE deal would ensure that its factories operate at full capacity.
Despite the COVID-19 slump, it maintained its facilities and trained employees throughout the pandemic, it added.
AIDC’s cumulative revenue rose 72 percent annually to NT$9.94 billion for the first three months of this year, company data showed.
Global passenger numbers last year recovered to about 68.5 percent of pre-pandemic levels, the company said, citing International Air Transport Association data.
Boeing has forecast that airlines would need 41,170 new aircraft from last year to 2041, while Airbus forecast that 39,490 new planes would be needed, it said.
AIDC said it previously manufactured front compressor cases for LEAP engines, as well as middle compressor cases, combustion chamber diffuser cases, engine hot sections and engine central structural components.
Led by AIDC chairman Hu Kai-hung (胡開宏), the company signed the deal at GE Aerospace’s headquarters in Cincinnati, Ohio, on Tuesday.
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