Hanwha Techwin Co., a defense and aircraft engine making unit of South Korean conglomerate Hanwha Group, opened a new aircraft engine parts factory, hoping that the new factory would help the company reinforce its position in the global aircraft engine parts industry.

Hanwha Techwin announced on Tuesday that it completed a new factory dedicated to produce aircraft engine and engine parts in Changwon, South Gyeongsang Province. The factory boasting of a total floor area of 13,752 square meters is expected to help reduce manufacturing time significantly and improve quality thanks to its automated system with high-tech robots, the company said.

The new factory will produce engine parts for three global major aircraft engine companies - General Electric Co. (GE), Rolls-Royce and Pratt & Whitney (P&W). The factory will mass produce various components including turbine blades for them. The core parts it will produce for them include parts for GE’s next-generation engine called the LEAP. GE expects that the LEAP engine would be installed in Boeing 737 MAX this year at the earliest and Airbus A320 next year. Boeing 737 MAX and Airbus A320 are considered top-of-the-line airplanes that are expected to lead the aircraft market. The success of the LEAP engine would help boost Hanwha Techwin’s profits.

The company expects cumulative sales of its 18 different parts for the LEAP engine from this year to 2025 to reach $430 million.

Sales from engine business accounted for 40 percent of its entire sales of 2.61 trillion won ($2.27 billion) last year, according to the company. The company aims to become a major engine producer through mergers and acquisitions with foreign companies and it is considering mergers with global top engine parts suppliers.

Hanwha Techwin shares ended on Wednesday at 48,500 won, down 1,800 won, or 3.58 percent, from the previous session.

By Kim Jung-hwan

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