Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Samsung Techwin clinches $1.7 bil. aircraft engine deal
Samsung Techwin PresidentKim Cheol-kyo, center, poses with Bennett Croswell, right, president of Pratt & Whitney’s military engines business, andJim Maser, vice president of Pratt & Whitney’s marketing division, after they signed a risk and revenue sharing partnership (RRSP) agreement for the development of aero-engine parts, during the Paris Air Show, Tuesday. / Yonhap
By Park Jin-hai
By Park Jin-hai
Samsung Techwin, Samsung’s defense unit, which is soon to be merged with Hanwha Group, inked a $1.7 billion deal to supply aircraft engine parts to U.S. engine maker Pratt & Whitney during the Paris Air Show.
Under a risk and revenue sharing partnership (RRSP) deal with one of the world’s top-three aero-engine makers, the Korean firm will provide engine parts until 2062.
The RRSP is a specific contract form that distributes all the risk and revenue throughout the aero-engine development, manufacturing and after-sales, in proportion to the stakes partners hold in the project.
Samsung Techwin will develop and manufacture the middle turbine frame that is part of Pratt & Whitney's geared turbofan engine.
The geared turbofan engine is a highly efficient engine that has less fuel consumption and noise but with a better performance, which is projected to be the mainstream engine for regional jets carrying less than 130 passengers.
It is the company’s latest export contract, following its $900 million deal with Pratt & Whitney in 2013 and a $430 million deal with GE in January this year. The company has bagged supply contracts worth $3 billion in total over the past six months.
The RRSP has a high threshold, and only a small number of high-tech companies can sign one. Clinching the RRSP deal, Samsung Techwin doesn’t have to renew the contract on a three-to-five year basis that it would have in the past, but can expect to have a more stable business structure as Pratt & Whitney’s partner.
“Through the deal, Samsung's status has emerged as a parts supplier to a co-developing partner,” the company said. “It is the outcome of mutual trust in our quality that we have built in the industry over the past 30 years.”