Melrose Industries PLC New GE Aerospace Agreement (4127S)
November 06 2023 - 2:00AM
UK Regulatory
TIDMMRO
RNS Number : 4127S
Melrose Industries PLC
06 November 2023
6 November 2023
MELROSE INDUSTRIES PLC
New GE Aerospace Agreement
Melrose Industries PLC ("Melrose") is pleased to announce that
its GKN Aerospace Engines business has signed a major new agreement
with GE Aerospace, the global aerospace engines market leader.
Background and scope
GKN Aerospace and GE Aerospace have significantly widened their
long-term partnership with a new agreement that expands RRSP
participation on the GEnx programme, the fastest-selling
high-thrust engine. The new agreement also covers new technology
insertion, aftermarket repair of high-volume engines structures,
and production of fan cases for a range of GE engines.
Expanded RRSP on GEnx
GKN Aerospace's involvement in the GEnx RRSP has been extended
beyond the current OE focus to include significantly greater
participation in the aftermarket phase. The GEnx engine is well
proven and with a strong future order book. GKN Aerospace will
contribute further to GEnx aftermarket support in return for a
greater share of life of program aftermarket revenues.
Additional commercial agreements
As part of the agreement, GKN Aerospace will help to drive the
GEnx programme towards its cost and carbon emissions reduction
targets through contributing its new proprietary technology,
particularly with additive fabrications. GKN Aerospace will also
join GE Aerospace's global aftermarket repair network, supporting
GEnx with specialised repair content for complex structural
components. Finally, GKN Aerospace has also secured life-of-program
contracts to deliver 100% of GEnx, CF6 and GE90 fan cases, as well
as 50% of GE9X fan case assembly.
Financial implications
It is expected that the total incremental GKN Aerospace sales
from this new agreement is estimated at around $5 billion over the
full 30 year+ life of the GEnx engine. The benefits will read
through significantly in the medium term from GEnx aftermarket
activities and as new GKN technology enters the GE engine fleet.
There is no material change to short-term guidance.
Next trading update
Melrose will announce its next trading update on Thursday 16
November 2023.
Simon Peckham, Melrose CEO, said:
" This agreement illustrates the unique breadth and quality of
our business across the aerospace engines industry and its position
as a technology leader. We very much look forward to deepening our
relationship with GE."
-ends-
Enquiries:
Investor Relations: Chris Dyett +44 (0) 7974 974690
ir@melroseplc.net
Montfort Communications: +44 (0) 20 3514 0897
Nick Miles +44 (0) 7739 701634 / Charlotte McMullen +44 (0) 7921
881800
miles@montfort.london / mcmullen@montfort.london
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END
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