Samsung Techwin Wins $1.7 Billion engine Parts Contract

Samsung Techwin, a South Korean aeronautics and defense technology firm, announced Wednesday that it has signed a US$1.7 billion deal to supply engine parts to US engine maker Pratt & Whitney. 

Under the deal, Samsung will provide the engine parts to Pratt & Whitney until 2062 through a risk and revenue sharing program.

Samsung Techwin is expected to develop and manufacture the middle turbine frame that is part of Pratt & Whitney's geared turbo fan engine.

"Through the deal, Samsung's status has emerged from a parts supplier that renews supply contracts every three to five years to a co-developing partner," the company said.

The deal is the latest in Samsung Techwin's overseas exports. The company signed a $900 million deal with Pratt & Whitney in 2013 and a $430 million deal with GE in January this year.

Pratt & Whitney is one of the world's biggest engine makers. In 2013, its sales has reached $14.5 billion.