September 19, 2014
GKN Aerospace enters into risk and revenue sharing agreement with P&W
GKN Aerospace has agreed a major risk and revenue sharing partnership (RRSP) with Pratt & Whitney, covering the supply of key components for the PurePower PW1900 Geared Turbofan (GTF) engine – which will power the Embraer 190 and the 195-E2 narrow body, medium range aircraft. The agreement, under which GKN Aerospace will take a 7% share in the engine programme, could be worth approximately $2.5bn of GKN sales over the life of the programme, subject to engine sales. GKN Aerospace has already demonstrated its technological leadership in key engine components for other Pratt & Whitney GTF engines. This agreement ensures that GKN Aerospace has a strong industrial presence on all GTF engines. Manufacture of all components will be undertaken at GKN Aerospace’s facilities in Sweden, Norway and Connecticut, USA. First delivery of development parts is scheduled to take place early in 2015. Under the RRSP agreement, GKN Aerospace Engine Systems will assume responsibility for the design and manufacture of the turbine exhaust case (TEC) and intermediate compressor case (IMC) for the PW1900G engine along with the manufacture of the engine’s low pressure turbine (LPT) shaft and fan case mount rings. GKN Aerospace also takes responsibility for cross-programme production of the same set of structures for the PW1700G engine which will power the Embraer 175-E2.