KAI inks $754m deal to supply wing parts to Boeing’s Dreamliner

Korea Aerospace Industries said Tuesday it signed an exclusive supply contract worth $754 million to supply wing parts to Boeing 787 aircraft from 2022 to 2038.

South Korea’s sole aircraft manufacturer extended its exclusive supply contract with Japanese transportation conglomerate Subaru to supply wing parts called “center wing box” for the B787 aircraft. The contract will remain valid until Boeing stops making the aircraft, according to the company.

A wing box is a structural component in an aircraft that provides support and rigidity to the wings.

From 2005 to 2019, KAI, a tier 2 vendor for Boeing, supplied center wing boxes for 1,000 units of B787 aircraft to Subaru, a tier 1 vendor for Boeing.

“The supply contract will allow KAI’s some 20 partner companies to secure orders, which will revitalize the domestic aircraft manufacturing industry hit hard by the coronavirus outbreak,” a KAI official said.

The B787, also known as the Dreamliner, can carry 250-350 passengers. Thanks to its improved fuel efficiency, more than 970 units have been sold since 2011.

“The supply contract has been possible thanks to the partnership KAI built with its client in 2005 and its competitiveness in technology and quality,” the KAI official said.

By Kim Byung-wook (kbw@heraldcorp.com)