Melrose Industries PLC (LSE:MRO, OTC:MLSPF)'s share price jumped 4.1% after the company announced its GKN Aerospace Engines business has signed a major new agreement with GE Aerospace, the global aerospace engines market leader.
The two firms have expanded their long-term partnership with a new agreement that expands the risk and revenue sharing partnership participation on the GEnx programme, the fastest-selling high-thrust engine.
The new agreement also covers new technology insertion, aftermarket repair of high-volume engines structures, and production of fan cases for a range of GE engines.
The FTSE 100-listed firm expects the deal to boost GKN Aerospace sales by around US$5 billion over the full 30-year life of the GEnx engine.
The benefits will read through significantly in the medium term from GEnx aftermarket activities and as new GKN technology enters the GE engine fleet, it said.
Melrose added “there is no material change to short-term guidance”.