GE GE Aerospace

   By Kwanwoo Jun 
 

Hanwha Aerospace Co.'s shares rallied Tuesday after the South Korean company struck a $322.3 million deal to supply engine parts to General Electric Co.

The defense and aircraft-engine company's stock closed 13% higher at 48,950 won ($43.57), notching its biggest daily percentage gain since June 17, 2020.

Hanwha Aerospace said in a regulatory filing that it has signed a letter of intent to supply aircraft-engine parts to GE from 2023 to 2026.

The rally was also driven by the U.S. and South Korea agreeing over the weekend to lift Washington's restrictions on Seoul's missile development, IBK Securities analyst Lee Sang-hyun says.

The agreement should allow South Korea to develop long-range rockets and pave the way for Hanwha Aerospace to develop its space-satellite business, Mr. Lee said.

The South Korean company and its affiliates are developing space rockets, satellites and relevant communications systems.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

May 25, 2021 03:06 ET (07:06 GMT)

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