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Pratt & Whitney continues to build production readiness with more than $18 billion in supplier long-term agreements

In anticipation of a significant increase in engine production, Pratt & Whitney has signed nearly 200 long-term agreements involving a projected spend of more than $18 billion with key product suppliers from around the world. These agreements will help the company support increased production levels as it prepares for an expected doubling inengine production by the end of the decade. Pratt & Whitney is a division of United Technologies Corp. (NYSE: UTX).

"In the 21st century community of global manufacturing, the aerospace industry views job creation and economic success from the holistic perspective of being one 'ecosystem' – as our workload increases during our ramp in production, it increases for our suppliers as well. In turn, this allows our suppliers to invest in facilities and talent," said Sergio Loureiro, vice president, Global Supply Chain, Pratt & Whitney. "We team with our suppliers and partners to make those parts for which they are best equipped to produce, while we focus on making our highly advanced proprietary components in-house. Our approach to sourcing parts is balanced and includes analysis of numerous elements of evaluation, including manufacturing capability and special-processes expertise, while considering the overall skill base at each supplier / partner."

These long-term agreements are with trusted suppliers committed to understanding and meeting Pratt & Whitney's rigorous quality, cost and delivery requirements, and ethical standards. The suppliers will provide key parts and components for Pratt & Whitney's large engine business, including the PurePower® PW1000G family of engines, the F135 military engine, and Pratt & Whitney Canada's engines, such as the PurePower PW800, to assure delivery to customers over the life of the engine programs.

"To succeed in today's manufacturing ecosystem, we work with and rely on our suppliers to produce every part at affordable costs, on-time and in compliance with all of our quality, performance and compliance specifications," said Dave Emmerling, vice president, Strategic Sourcing, Pratt & Whitney. "Our supply chain team, manufacturing experts and engineers are working closely with our suppliers to ensure they have the manufacturing technology and tools in place to increase engine production. This helps our suppliers to become more competitive across their customer bases. We also invest in higher education institutions to ensure there are sufficiently trained and highly skilled workers to meet the rigorous demands and efforts required to design and build the industry's most advanced commercial and military jet engines."

Pratt & Whitney is working with United Technologies Corporation and the company's aerospace businesses to incorporate "One Company" terms and conditions into the agreements, which provides for a common contracting approach between UTC and its suppliers. This allows UTC to leverage its spend with suppliers, while facilitating future collaboration between its suppliers and the other UTC businesses.

Press release issued by Pratt & Whitney Large Commercial Engines on April 2, 2015


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