Taiwan's Aerospace Industrial Development Corporation (AIDC) and GE sign a 10-year contract for engine components

Taiwan's Aerospace Industrial Development Corporation (AIDC) and GE Company signed a ten-year long-term contract on engine manufacturing. GE is the world's top engine supplier. Among the global civil flights, an aircraft equipped with GE engines takes off and lands every two seconds. At the same time, more than 2,200 sorties are in the air, and more than 300,000 passengers are satisfied.

Hu Kaihong, chairman of AIDC, led the company's senior management team to Ohio, the United States, to visit GE Aerospace, a global engine manufacturer. This time, AIDC visited and signed 10 core components of LEAP series engines at the Learning Center of GE's Cincinnati headquarters. A large order for a long-term contract with a contract period from 2026 to 2035. It was signed by Chairman Hu Kaihong and the Deputy General Procurement Representative of GE Aerospace, showing that the long-term business cooperation between the two parties is stable and has reached a major milestone.

The 10-year long-term contract signed by the two parties this time mainly targets LEAP series engine core components, which are used in Airbus A320Neo and Boeing B737 MAX. It shows that AIDC's production technology and management system have won the recognition and trust of customers. The amount of this long-term contract will exceed NT$35 billion. At the same time, during the execution period of this contract, the price can be adjusted upwards according to price increases and negotiations. It is expected to inject stable and considerable revenue for AIDC.

In the past two years, due to the difficulties with the Coronavirus pandemic, the revenue of AIDC has dropped sharply, but Chairman Hu Kaihong adheres to the policy of no layoffs, no salary cuts, and no unpaid leave, leading all colleagues in the company to go through the low tide of operation. AIDC can immediately start production with the existing manpower, machinery and equipment, and meet the needs of customers at the fastest speed. According to the survey by the International Air Transport Association (IATA), the global air passenger traffic in 2022 has recovered by about 68.5% compared with the pre-pandemic period in 2019. Boeing and Airbus also estimate the demand for new aircraft from 2022 to 2041 after the pandemic to be 41,170 and 39,490 respectively.

AIDC continues to focus on customer and market needs, and pursues improvement to meet the increasingly stringent standards of international customers. In the future, AIDC will deepen cooperation with customers in various fields such as design, research and development, manufacturing, and raw material supply chain, in order to establish a more long-term and stable partnership, and take advantage of the opportunity to cooperate with international manufacturers to promote cooperation in the domestic supply chain system, so that Taiwanese brands can shine internationally.