Magellan wins $425 million contract for engine programs with Rolls-Royce

Magellan Aerospace Corporation announced today that it has reached agreement with Rolls-Royce Plc and Rolls-Royce Deutschland Ltd & Co KG to manufacture mainline shafts and stub shafts for various Rolls-Royce engine programs. The work will be performed on these flight safety critical rotating parts at Magellan's Middleton Aerospace facility in Haverhill, MA. It is estimated that the gross program revenue will be approximately $US 425 million over the 15-year term of the agreement. "Magellan has a longstanding business relationship with Rolls-Royce, and is pleased to enter this agreement and further expand the relationship," stated Jim Butyniec, President and CEO of Magellan Aerospace Corporation. He noted that "This advancement continues Magellan's strategy to expand its core manufacturing capabilities and to invest in state-of-the-art equipment to maintain competitiveness in the global marketplace." Dan Chaisson, General Manager of the Haverhill operating facilities, commented that, "Magellan will utilize its existing equipment for initial production, but will expand its manufacturing footprint at the Haverhill facility to accommodate the new equipment and processes required to support full-scale production for the program." The first Magellan deliveries are expected to be made in the second half of 2010.