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Biz News Korea(Eng)
KAI inks deal with Embraer, becoming supplier to four aircraft majors
- Collected
- 2017.03.06
- Distributed
- 2017.03.07
- Source
- Go Direct
이미지 확대According to aviation industry sources on Sunday, KAI is set to sign a contract with Brazilian aerospace giant Embraer to supply wing parts for aircrafts for at least 10 years. The first batch could be worth from $200 million to $300 million.
With the latest contract, KAI will become a supplier for all big four aerospace names - Boeing (U.S.), Airbus (France), Bombardier (Canada) and Embraer (Brazil) - that dominate the global aviation market.
KAI currently provides tail wings and wing structure for Boeing 737, 777 and 787 and wing top panels (WTP) for Airbus A320 and A350. It also supplies fuselage and wing structure to Bombardier’s 50-seat CRJ 200 aircraft and small jets.
The deal with Embraer further diversifies the Korean aircraft maker’s export portfolio. In the civilian aircraft segment, supplies to Boeing make up 53 percent of its sales. Airbus and Bombardier contribute 38 percent and 9 percent, respectively. Revenue from the civilian sector totaled 1 trillion won ($865 million) last year, or 32 percent of its total sales.
At 1:25 p.m. in Seoul trading Monday, shares of Korea Aerospace Industries rose 1.78 percent or 1,000 won to 57,300 won.
By Kim Jung-hwan
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]