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September 18, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Hexcel extends contract with UTC; says it will result in $1B in sales

Hexcel Corp. and UTC Aerospace Systems’ Aerostructures business have extended their contract through 2030. Hexcel said it expects the extension, which provides for the supply of advanced composites for various commercial aerospace programs, to generate total sales of more than $1 billion throughout its term.

The primary supply agreement is for carbon and glass prepreg systems used on nacelle structures for the Boeing 787 Dreamliner, Airbus A350 XWB and A320neo, Bombardier C Series and Embraer E-Jet E2 programs.

“Extending our long-term relationship to 2030 is part of our sourcing strategy that provides us a new degree of certainty in the supply of our composite raw materials,” said Don Beverlin, vice president of supply management for UTC Aerospace Systems – Aerostructures. “This is good for both parties and good for our customers as well.”

Based in Stamford, Hexcel develops, manufactures and markets lightweight, high-performance structural materials including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered core and composite structures for use in commercial aerospace, space and defense and industrial applications.

UTC Aerospace Systems, headquartered in Charlotte, North Carolina, designs, manufactures and services integrated systems and components for the aerospace and defense industries, supporting a global customer base with worldwide manufacturing and customer service facilities.

Hexcel recently released its third-quarter financial results, which listed revenue at $491.5 million, down 1.8 percent from the previous third quarter. The company also announced a quarterly dividend of 12.5 cents, which will be paid on Nov. 8 to stockholders on record as of Nov. 1.