Bet Shemesh Engines Ltd. (TASE: BSEN) has signed a $63 million long-term follow-on contract with Germany's MTU Aero Engines AG (DAX: MTX) for the supply of disks and turbine blades for jet engines. Some of the components will be delivered over five years in 2014-18, and others will be delivered over eight years in 2014-21.
MTU has been a Bet Shemesh Engines' customer for 12 years, supplying spare parts for a wide range of jet engines, including the V2500, PWC545, PWC306 and PWC307. The contract adds new items to the engines made by MTU for Mistubishi Heavy Industry Ltd.'s (TSX: 7011) regional jet, Bombardier Inc.'s (TSX: BBD) Series C jets, and other planes.
The contract with MTU follows long-term contracts between Bet Shemesh Engines and France's Snecma SA, Hamilton Sundstrand (now part of UTC Aerospace Systems) and General Electric Company (NYSE: GE) of the US, and Germany's PWA AG.
Bet Shemesh Engines' share price rose 14.6% in morning trading to NIS 24.45, giving a market cap of NIS 165 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 14, 2013
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