EDAC Technologies Corp. on Tuesday announced that it has entered into three long-term agreements to supply jet-engine components to GE Aviation, Rolls-Royce Canada and Volvo Aero.
The agreements are worth a projected $58 million in sales, and boost the company's backlog to a record $310 million, according to Farmington, Conn.-based EDAC.
EDAC inked a five-year agreement with Volvo Aero to produce rotating disks, compressor hubs and other components for an engine program used in Boeing aerial-refueling tankers and wide-body commercial aircraft, as well as another engine used in European fighter jets, EDAC said in a news release.
Based on projected volumes, the Volvo Aero agreement is valued at approximately $29 million through 2017.
EDAC said it has entered into a four-year agreement with a division of GE Aviation to provide booster cases for two engines used on aircraft such as the Boeing 747 and the Airbus A330. Based on projected volumes, the agreement is valued at approximately $13 million through 2015.
The company also said that Rolls-Royce Canada has renewed an existing contract with EDAC for an additional five years. Under the contract, EDAC is producing rotating components for ground-based turbines used in power generation. The contract extension is valued at $16 million through 2016, EDAC noted.
EDAC said it expects to begin recognizing additional revenue from the ground-based-turbine contract in 2012, while production ramp-up for the other two contracts is expected later this year, with shipments to begin in 2013.
"With these LTAs, our backlog has reached a milestone, breaking through the $300 million level for the first time," said Dominick Pagano, president and CEO of EDAC Technologies. "Winning these contracts reflects our focus in recent years on expanding our precision manufacturing platform, developing the capacity to produce a wider range of parts, and diversifying our relationships with Prime and Tier 1 customers."
The company estimates that it will deliver $260 million to $280 million of its current $310 million backlog within the next three to five years.