TAT Technologies Ltd. (Nasdaq:TATTF; TASE:TATTF) has won a long-term contract from Brazil's Embraer, Empresa Brasileira de Aeronautica SA (NYSE: ERJ; Bovespa: EMBR3) to be responsible for the design, manufacture, integration, testing, supply, and product support for the heat exchangers to be incorporated into the new Legacy 450 mid-light and Legacy 500 midsize executive jets being developed by Embraer. Embraer is one of the world's largest manufacturers of commercial aircraft.
TAT said that, assuming the successful development and marketing of the new aircraft, it expects about $20 million revenue over a ten year period which should begin in 2010. The company added that, if successful, the product will subsequently generate significant additional aftermarket and support revenues. The company said that it will incur certain developmental expenses over the next two years in to develop its heat transfer product.
TAT Technologies president and CEO Dr. Shmuel Fledel said that contract was a significant achievement for the company and part of its aggressive marketing strategy to be one of the leading companies for heat transfer technology products.
TAT Technologies is a subsidiary of TAT Industries Ltd. (TASE:TAT5), and a sister company of Limco-Piedmont Inc. (Nasdaq:LIMC), with which it is being merged. TAT Technologies' share rose 4% on Nasdaq to $4.93. The share rose 8.5% by mid-afternoon on the TASE to NIS 23.31, while TAT Industries share rose 1.3% to NIS 49.39.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2009
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