SEOUL --- Hanwha Aerospace Co., the aircraft engine making unit of defense and finance conglomerate Hanwha Group, said Monday it had signed a deal worth 350 billion won (US$300 million) to buy a U.S. aircraft engine maker in its latest expansion strategy.
Under the deal, Hanwha Aerospace will acquire a 100 percent stake in EDAC Technologies Holding Company by the end of the year, the company said in a regulatory filing.
"The company aims to expand its aircraft engine parts business based on the acquisition of EDAC and to become a risk and revenue sharing program (RSP) global partner in global aircraft engine markets," Hanwha Aerospace said in a statement.
The company expects the world's aircraft engine market to grow an average of 6 percent per year to reach $54.2 billion in 2025 on the back of rising travel demand and increased freight cargo.
Parent Hanwha Group recently announced it will invest 4 trillion won in its aircraft parts and defense industry businesses by 2022.
EDAC Technologies Holding Company owns U.S. aircraft engine manufacturer EDAC Technologies LLC. Connecticut-based EDAC Technologies LLC posted sales of $150 million last year and currently employs 590 employees, the statement said.
EDAC has mainly supplied aircraft engine components like integrally bladed rotors (IBR) and cases to U.S. aircraft engine makers such as Pratt & Whitney and General Electric, Hanwha Aerospace said.
Separately, Hanwha Aerospace said it has not considered and will not consider acquiring Asiana Airlines Inc., focusing instead on its mainstay aircraft engine business.