Chairman Kim Seung-youn of Hanwha Group.

President Kim Youn-chul of Hanwha Corp. right, signs an MOU with his counterpart at Cleverham Ltd., an affiliate of the world’s leading manufacturer of aerospace products, UTAS Group, which took place at the U.S. company’s head office in Charlotte, North Carolina, the U.S. on March 10.(Photos:Hanwha)

Hanwha Corp. signed a long-term export agreement on hydraulic systems for aircraft with Cleverham Ltd., an affiliate of the world's leading manufacturer of aerospace products, UTAS Group. The signing took place the U.S. company’s head office in Charlotte, North Carolina, on March 10. President Kim Youn-chul of Hanwha Corp./Machinery was directly invoilved in the event.

The contract is in excess of $50 million plus another $50 million in potential future programs. This long-term agreement (LTA) comes as the companies have enjoyed a long relationship of cooperation. 

The deal is considered as a good opportunity for Hanwha Corp.’s future growth. By signing the LTA, Hanwha Corporation will supply aerospace hydraulic products for UTAS on global programs including B787 (Boeing), AW139 (Augusta Westland) and CH53K (Sikorsky). Since all these programs are best sellers in the market, Hanwha expects further growth from the arrangment.

With the achievement, Hanwha Corporation plans to continue enhancing its relationship with UTAS, while diversifying its global aerospace business.

The oil pressure hydraulic product is used to apply pressure to the takeoff and landing gears of the airplanes, which need a high-degree of precision to produce. It is highly unusual to sign such a long-term exclusive contract extending over 10 years for such high-precision equipment and a key component of the super passenger jets, industry sources said.

Officials of Hanwha said that the company has been supplying oil pressure hydraulic equipment since 2006 to Cleverham, which was instrumental in Hanwha concluding such a long-term contract with the U.S. airplane parts and aerospace products maker. Experts predict that the supply of oil pressure equipment will only grow in the future, counting on the fact that the B-787 Dreamliner is the first such deluxe airplane whose body is made with carbon textiles and produced with the most high-tech technologies. Thus, demand by airlines around the world will rise beyond expectations. Korean Air will get the first delivery of the Deamliner next year.

Hanwha plans to develop and produce more airplane parts such as landing gears, with its recognition as an airplane parts producer and supplier boosted with the signing of LTA with Cleverham.

“Founded in 1953, Hanwha Corp./Machinery has been leading the global machinery industry by leveraging the technology and expertise we’ve accumulated for more than half a century,” the company said. “With ceaseless technological development and innovation, the company has been producing high value-added machinery for various fields such as industrial machinery and machine tools.” 

The company has strengthened its technical capabilities with advanced technology by extending even into areas such as aerospace support component business.

Hanwha Corp./Machinery, which contributes to the productivity and quality increases of domestic and international companies, has been a leader in developing technologies. 

“We are opening up a brighter future for everyone through continuous research and development,” the company added.