Business
TAT Technologies signs a 5-year contract extension with a global air carrier for APU MRO services with an estimated revenues of $50 million
NETANYA, Israel, Feb. 6, 2023 /PRNewswire/ -- TAT Technologies Ltd. (TASE: TATT) (NASDAQ: TATT), a leading supplier of products and services for the
About this update from Tat Technologies Ltd.
[{"type":"text","content":"NETANYA, Israel, Feb. 6, 2023 /PRNewswire/ -- TAT Technologies Ltd. (TASE: TATT) (NASDAQ: TATT), a leading supplier of products and services for the commercial and military aviation industries and the ground defense industries, announces a significant contract expansion with a global air carrier.\nThis contract extension is a result of a very successful partnership between the companies over the last 5 years. As part of this contract, TAT will provide MRO services to the airline's GTCP331 model APUs. TAT estimates revenues from this contract to be $50 million ($10 million per year).\nIn 2020 and 2021, TAT (through its fully owned subsidiary Piedmont Aviation components from Greensboro North Carolina) signed several strategic contracts with the aviation giant Honeywell. Under these contracts, TAT was awarded a 10-year license for repair and overhaul of APUs for Boeing and Airbus's key platforms, including B737, B777, B767/757 and A320 aircrafts and the C17 which is used for military purposes. The Company is also engaged in APUs leases to airlines, mainly for B777 aircraft, under an exclusive 10-year contract with Honeywell. Piedmont has completed its facility upgrades required to start MRO operations for the GTCP331-500 (B777) and expects to complete the same for the GTCP131-9 (A320/B737) within the coming months.\nIgal Zamir, CEO of TAT: \"We are extremely happy with the extension of this contract. Following a very comprehensive bid process, the customer awarded us with this contract which speaks to our price strategy, proven high level of service and great relationship. The contract is a significant milestone in realizing the strategic value of the contracts signed with Honeywell over the past 24 months and a testimony to TAT's ability to serve large fleets. By extending this contract, TAT Piedmont is now clearly the global market leader in MRO for the 331-series APU to the leading air carriers. This contract will further improve the profitability and operating efficiency of our subsidiary Piedmont and will significantly contribute to TAT's group consolidated results for following years to come\".\nAbout TAT Technologies LTD\nTAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufac...