KAI wins US$557 million contract to supply wing component to Boeing

SEOUL, July 11 (Yonhap) -- South Korea's sole aircraft maker said Tuesday it won a 641.1 billion-won (US$557 million) contract to supply a key wing component to U.S. aerospace company Boeing for the next 13 years.

The Korea Aerospace Industries (KAI) said it will be the exclusive supplier of wing ribs for Boeing's new series of wide-body twin-engine jet airliners, the B777x, until the end of 2030. Ribs are forming elements that create the structure of the wings.

The latest deal is equal to 20.7 percent of KAI's consolidated sales last year.

The company then said in a separate regulatory filing that it inked a contract with Boeing to supply pivot bulkheads for its popular B787 Dreamliners. This contract is worth 79 billion won and is effective from Jan. 1, 2022, through the end of 2028.

KAI already has a contract with the aerospace giant to supply the same parts through 2021. The new agreement effectively extends the end date.
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