TAT Technologies announces the signing of a new contract with a large global airline
TAT Technologies Ltd. (TASE: TATT, NASDAQ: TATT) has secured a significant 5-year contract with a major global airline to provide Auxiliary Power Units (APU) Repair, Maintenance and Overhaul (MRO) services. This contract, estimated to generate $50 million in revenue ($10 million annually), reinforces TAT's strategic partnerships with key industry players such as Honeywell. The contract is expected to enhance profitability and operational efficiency, benefiting TAT's subsidiary Piedmont and supporting the company's consolidated results moving forward.
- Secured a 5-year exclusive contract with a global airline for APU MRO services.
- Estimated revenue of $50 million ($10 million annually) from the contract.
- Demonstrates strategic value from previous contracts with Honeywell.
- Expected to improve Piedmont's profitability and operational efficiency.
- Enhances trust from industry leaders in TAT's capabilities.
- None.
The contract will include providing Auxiliary Power Units (APU) Repair, Maintenance and Overhaul (MRO) services in the airline's aircraft
NETANYA, Israel, June 9, 2022 /PRNewswire/ -- TAT Technologies Ltd. (TASE: TATT), (NASDAQ: TATT), a leading supplier of products and services for the commercial and military aviation industries and the ground defense industries, reports a significant new contract with a large global airline.
As part of this contract TAT will provide MRO services to the airline's APU's
- The contract is exclusive for 5 years, during which Piedmont, TAT's North Carolina subsidiary, will maintain all of the airline's APUs of a certain model;
- Revenues are estimated at a total of
$50 million ($10 million per year).
In 2020 and 2021, TAT signed a number of strategic contracts with the aviation giant Honeywell. Under these contracts, TAT was awarded a 10-year license for repair and overhaul of APUs for Boeing and Airbus's key platforms, including B737, A320, B777 and B767/757 aircrafts. The Company is also engaged in the APUs leases to airlines, mainly for B777 aircraft, under an exclusive 10-year contract with Honeywell.
Igal Zamir, CEO of TAT: "We are pleased to have won this contract. The contract is a significant milestone in realizing the strategic value of the contracts signed with Honeywell over the past 18 months and a testimony to TAT's ability to serve large fleets. This contract is another proof of the trust key players in the industry has in TAT's abilities. This additional business will improve the profitability and operating efficiency of our subsidiary Piedmont and will contribute to improving TAT 's group consolidated results for the years to come".
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and products to the commercial and military aerospace and ground defense industries. TAT operates under four segments: (i) Original equipment manufacturing ("OEM") of heat transfer solutions and aviation accessories through its Gedera facility; (ii) MRO services for heat transfer components and OEM of heat transfer solutions through its Limco subsidiary; (iii) MRO services for aviation components through its Piedmont subsidiary; and (iv) Overhaul and coating of jet engine components through its Turbochrome subsidiary. TAT controlling shareholders is the FIMI Private Equity Fund.
TAT's activities in the area of OEM of heat transfer solutions and aviation accessories primarily include the design, development and manufacture of (i) broad range of heat transfer solutions, such as pre-coolers heat exchangers and oil/fuel hydraulic heat exchangers, used in mechanical and electronic systems on board commercial, military and business aircraft; (ii) environmental control and power electronics cooling systems installed on board aircraft in and ground applications; and (iii) a variety of other mechanical aircraft accessories and systems such as pumps, valves, and turbine power units.
TAT's activities in the area of MRO Services for heat transfer components and OEM of heat transfer solutions primarily include the MRO of heat transfer components and to a lesser extent, the manufacturing of certain heat transfer solutions. TAT's Limco subsidiary operates an FAA-certified repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT's activities in the area of MRO services for aviation components include the MRO of APUs, landing gears and other aircraft components. TAT's Piedmont subsidiary operates an FAA-certified repair station, which provides aircraft component MRO services for airlines, air cargo carriers, maintenance service centers and the military.
TAT's activities in the area of overhaul and coating of jet engine components includes the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes and afterburner flaps.
For more information of TAT Technologies Ltd., please visit our web-site:
Contact:
Mr. Ehud Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
ehudb@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which include, without limitation, statements regarding possible or assumed future operation results. These statements are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause our results to differ materially from management's current expectations. Actual results and performance can also be influenced by other risks that we face in running our operations including, but are not limited to, general business conditions in the airline industry, changes in demand for our services and products, the timing and amount or cancellation of orders, the price and continuity of supply of component parts used in our operations, the change of control that will occur on the sale by the receiver of the Company's shares held by our previously controlling stockholders, and other risks detailed from time to time in the Company's filings with the Securities Exchange Commission, including, its annual report on form 20-F and its periodic reports on form 6-K. These documents contain and identify other important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. Stockholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update publicly or revise any forward-looking statement.
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SOURCE TAT Technologies Ltd
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