Hanwha Aerospace made an announcement on June 10 that it has signed a contract to acquire a 100% stake in EDAC, which specializes in aircraft engine parts located in Connecticut, the U.S.
The detailed acquisition amount will be around $300 million and will be finalized through future negotiations. Hanwha Aerospace expects the deal to increase its receipt of orders and expand its product portfolio for U.S. engine manufacturers such as Pratt & Whitney and GE.
In particular, it is expected that Hanwha Aerospace will be able to secure capabilities for high-end processing technology of variety of products that it has not experienced.
Not only is it able to strengthen its design, development, and technical capabilities, which are essential to grow as a top tier in the risk and revenue program (RSP) field in the future. It can also establish a platform to expand its business in the U.S.
"Based on advanced technology and quality that we have built over the past 40 years, we have recently upgraded our status as a RSP global in the aircraft engine manufacturing market with high entry barriers," said President Shin Hyun-woo of Hanwha Aerospace.