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Pratt & Whitney Inks $17M Deal with Four Italian Suppliers

United Technologies Corp.’s UTX operating segment, Pratt & Whitney, recently inked a 10-year agreement worth $17 million with four leading aerospace products suppliers in Italy for the uninterrupted supply of F135 engine components. The new suppliers – Aerea S.p.A., APR S.r.l., Mepit S.r.l. and NCM S.p.A – were selected for their ability to deliver high-quality precision parts and components on demand on-cost.

Pratt & Whitney is actively focusing on the production of F135 engines that power the F-35 Lightning II fighter jets. These highly advanced fighter jets are manufactured by Lockheed Martin Corporation LMT and are widely regarded for their superior combination of stealth with speed and agility.

In order to maintain a steady production pipeline, Pratt & Whitney has put in place an effective supply chain across the globe. The company has further ramped up its supplier base to double both commercial and military engine production over the next five years by signing long-term agreements worth $22 billion with nearly 800 suppliers. The current agreements with the Italian suppliers are an extension in this endeavour.

Over the years, Italian suppliers have been the key to the development of the F-35 Lightning II, having secured $25 million worth of contracts for the F135 engine production. This tally is likely to increase manifold as the production gets amplified in the near future.

Pratt & Whitney is among the world’s leading suppliers of aircraft engines to the commercial, military, business jet and general aviation markets. Its Global Services provide maintenance, repair and overhaul services, including the sale of spare parts and fleet management services for large commercial engines.

Based in Hartford, CT, the parent company, United Technologies, provides high-end technology products and services to the building systems and aerospace industries worldwide. The company serves various end markets such as aerospace, defense and commercial construction. Business diversification allows the company to remain profitable in spite of tough economic conditions.

United Technologies presently has a Zacks Rank #3 (Hold). A couple of better-ranked  stocks in the industry include 3M Company MMM and Honeywell International Inc. HON, both carrying a Zacks Rank #2 (Buy).

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LOCKHEED MARTIN (LMT): Free Stock Analysis Report
3M CO (MMM): Free Stock Analysis Report
HONEYWELL INTL (HON): Free Stock Analysis Report
UTD TECHS CORP (UTX): Free Stock Analysis Report
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