Melrose expands aerospace partnership with $5bn deal

Birmingham manufacturing giant Melrose has announced a $5bn agreement with a global aerospace engines market leader.

GE Aerospace and Melrose’s GKN Aerospace has widened its partnership on the GEnx programme – its fastest-selling high-thrust engine, with the new agreement covering new technology insertion, repair of engine structures and production of fan cases for GE engines.

It is expected that GKN Aerospace sales from the agreement are estimated at around $5bn over the full 30-year plus life of the GEnx engine.

In a statement to the London Stock Exchange, Melrose said the engine is “well proven and with a strong future order book”. It’s looking to drive the programme to meet cost and carbon emissions reduction targets.

GKN Aerospace will also join GE Aerospace’s global aftermarket repair network, supporting the GEnx with specialised repair content for complex structural components.

Simon Peckham, Melrose CEO said: “This agreement illustrates the unique breadth and quality of our business across the aerospace engines industry and its position as a technology leader. We very much look forward to deepening our relationship with GE.”

Melrose will announce its next trading update on November 16.