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Pratt & Whitney increases capacity by signing $16 billion in supplier long-term agreements

At its semi-annual Partner and Supplier Forum, Pratt & Whitney, a United Technologies Corp. company, announced it has signed an additional $6 billion in long-term agreements since May. In total, Pratt & Whitney has signed more than 135 agreements with a projected spend of $16 billion to support the company's expected production increase. The agreements, which are with key product suppliers from around the world, will help the company increase capacity as it prepares to more than double engine production over the next decade. 

"Our suppliers make up a critical part of our future production capacity and by signing long-term agreements we are enabling them to invest in equipment, people and training in order to produce and deliver perfect-quality components," said Danny Di Perna, senior vice president, Engineering and Operations. "These agreements secure sources of parts and components for years to come and ensure the capacity investments to support our production ramp."

The agreements are with high-performing suppliers who will supply key parts and components for all Pratt & Whitney products from the PurePower engine family to the F135 military engine to auxiliary power units. These suppliers have committed to the highest performance and ethical standards.

"At Pratt & Whitney, and across UTC's aerospace companies, we are increasing capacity across our operations and supply chain to prepare for large volumes of commercial and military aircraft systems and engines. We are well on our way to finalizing the remainder of the long-term agreements with suppliers who can meet our demanding performance requirements," said Sergio Loureiro, vice president, Strategic Sourcing. "Suppliers who act quickly have an enormous opportunity to be part of Pratt & Whitney's bright future as well as UTC's. The 'One Company' terms and conditions now being incorporated into our contracts will open the door for high-performing suppliers to do business with other UTC aerospace companies."

Press release issued by Pratt & Whitney Large Commercial Engines on October 3, 2014


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