NETANYA, Israel, Feb. 6, 2023
/PRNewswire/ -- TAT Technologies Ltd. (TASE: TATT) (NASDAQ: TATT),
a leading supplier of products and services for the commercial and
military aviation industries and the ground defense industries,
announces a significant contract expansion with a global air
carrier.
This contract extension is a result of a very successful
partnership between the companies over the last 5 years. As part of
this contract, TAT will provide MRO services to the airline's
GTCP331 model APUs. TAT estimates revenues from this contract to be
$50 million ($10 million per year).
In 2020 and 2021, TAT (through its fully owned subsidiary
Piedmont Aviation components from Greensboro North Carolina) signed several
strategic contracts with the aviation giant Honeywell. Under these
contracts, TAT was awarded a 10-year license for repair and
overhaul of APUs for Boeing and Airbus's key platforms, including
B737, B777, B767/757 and A320 aircrafts and the C17 which is used
for military purposes. The Company is also engaged in APUs leases
to airlines, mainly for B777 aircraft, under an exclusive 10-year
contract with Honeywell. Piedmont has completed its facility upgrades
required to start MRO operations for the GTCP331-500 (B777) and
expects to complete the same for the GTCP131-9 (A320/B737) within
the coming months.
Igal Zamir, CEO of TAT: "We are
extremely happy with the extension of this contract. Following a
very comprehensive bid process, the customer awarded us with this
contract which speaks to our price strategy, proven high level of
service and great relationship. The contract is a significant
milestone in realizing the strategic value of the contracts signed
with Honeywell over the past 24 months and a testimony to TAT's
ability to serve large fleets. By extending this contract, TAT
Piedmont is now clearly the global market leader in MRO for the
331-series APU to the leading air carriers. This contract will
further improve the profitability and operating efficiency of our
subsidiary Piedmont and will significantly contribute to TAT's
group consolidated results for following years to come".
About TAT Technologies LTD
TAT Technologies Ltd. is a leading provider of services and
products to the commercial and military aerospace and ground
defense industries. TAT operates under four segments: (i) Original
equipment manufacturing ("OEM") of heat transfer solutions and
aviation accessories through its Gedera facility; (ii) MRO services
for heat transfer components and OEM of heat transfer solutions
through its Limco subsidiary; (iii) MRO services for aviation
components through its Piedmont
subsidiary; and (iv) Overhaul and coating of jet engine components
through its Turbochrome subsidiary. TAT controlling shareholders is
the FIMI Private Equity Fund.
TAT's activities in the area of OEM of heat transfer solutions
and aviation accessories primarily include the design, development
and manufacture of (i) broad range of heat transfer solutions, such
as pre-coolers heat exchangers and oil/fuel hydraulic heat
exchangers, used in mechanical and electronic systems on board
commercial, military and business aircraft; (ii) environmental
control and power electronics cooling systems installed on board
aircraft in and ground applications; and (iii) a variety of other
mechanical aircraft accessories and systems such as pumps, valves,
and turbine power units.
TAT's activities in the area of MRO Services for heat transfer
components and OEM of heat transfer solutions primarily include the
MRO of heat transfer components and to a lesser extent, the
manufacturing of certain heat transfer solutions. TAT's Limco
subsidiary operates an FAA-certified repair station, which provides
heat transfer MRO services for airlines, air cargo carriers,
maintenance service centers and the military.
TAT's activities in the area of MRO services for aviation
components include the MRO of APUs, landing gears and other
aircraft components. TAT's Piedmont subsidiary operates an FAA-certified
repair station, which provides aircraft component MRO services for
airlines, air cargo carriers, maintenance service centers and the
military.
TAT's activities in the area of overhaul and coating of jet
engine components includes the overhaul and coating of jet engine
components, including turbine vanes and blades, fan blades,
variable inlet guide vanes and afterburner flaps.
For more information of TAT Technologies Ltd., please visit our
web-site:
www.tat-technologies.com
Contact:
Mr. Ehud
Ben-Yair
Chief Financial Officer
Tel: 972-8-862-8503
ehudb@tat-technologies.com
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements which
include, without limitation, statements regarding possible or
assumed future operation results. These statements are hereby
identified as "forward-looking statements" for purposes of the safe
harbor provided by the Private Securities Litigation Reform Act of
1995. These forward-looking statements involve risks and
uncertainties that could cause our results to differ materially
from management's current expectations. Actual results and
performance can also be influenced by other risks that we face in
running our operations including, but are not limited to, general
business conditions in the airline industry, changes in demand for
our services and products, the timing and amount or cancellation of
orders, the price and continuity of supply of component parts used
in our operations, the change of control that will occur on the
sale by the receiver of the Company's shares held by our previously
controlling stockholders, and other risks detailed from time to
time in the Company's filings with the Securities Exchange
Commission, including, its annual report on form 20-F and its
periodic reports on form 6-K. These documents contain and identify
other important factors that could cause actual results to differ
materially from those contained in our projections or
forward-looking statements. Stockholders and other readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date on which they are made.
We undertake no obligation to update publicly or revise any
forward-looking statement.
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SOURCE TAT Technologies Ltd