Rolls-Royce Holdings PLC (LSE:RR.) is set to be awarded a new contract to support the Royal Air Force’s Eurofighter Typhoon jets, seeing the FTSE 100-listed company continue to service the aircraft’s engines.
Rolls-Royce will service engines used to power the jets under the six-year, £500mln deal with the Ministry of Defence, according to publication The UK Defence Journal.
A £350mln deal had seen Rolls-Royce agree to service the EJ200 engine until 2024, with the new agreement spanning until December 2029 and likely covering the RAF’s 101 Typhoons.
Rolls-Royce was among four European companies to develop the engine, which powers the Typhoons used by nine countries, including the likes of Germany, Spain, Italy and Austria in Europe.
Airbus Group (EPA:AIR) and BAE Systems PLC (LSE:BA.) are also involved in the design and development of the Typhoon, of which 589 have been delivered since the jet’s introduction in 2003.
“Rolls-Royce is the UK lead manufacturer for the EJ200 engine and the supplier designated to perform support services,” an MoD contract award notice stated, confirming the company's continuing partnership on the project.
Rolls-Royce shares climbed 0.2% to 149.6p.