Posted on: 06 June 2018 by Mark Howells
Safran and Boeing will design, build and service Auxiliary Power Units (APUs) in a joint venture leveraging their capabilities and further enhancing Boeing’s growing services portfolio.
They also state they will “work together on products and expanded service capabilities to benefit both customers and the industry at large.” The companies will have a 50% stake each in the partnership, based in the United States. The completion of the transaction is subject to customary conditions including regulatory and antitrust clearance. The deal is expected to close in the second half of this year.
“This strategic partnership will leverage Boeing’s deep customer and airplane knowledge along with Safran’s experience in designing and producing complex propulsion assemblies to deliver expanded, innovative services solutions to our customers,” said Stan Deal, president and CEO, Boeing Global Services.
Safran already supplies components to Boeing commercial programmes, including as a partner to produce CFM’s LEAP-1B engine for the B737 MAX (through CFM International, the 50/50 JV between Safran Aircraft Engines and GE). Boeing and Safran are also partners in MATIS, a JV in Morocco producing wiring products for several airframe and engine companies.
“Safran has contributed to prestigious international military and civil programmes, providing reliable, high-performance APU systems since 1962. Together, we are committed to delivering advanced APUs and world-class support to our customers,” said Philippe Petitcolin, CEO of Safran.
“This move will strengthen Boeing’s vertical capabilities as we continue to expand our services portfolio and make strategic investments that accelerate our growth plans,” said Greg Smith, Boeing chief financial officer.
Last month Boeing also revealed it was planning to buy aerospace parts company KLX Inc. to expand its aircraft services business.