Hanwha Aerospace president Shin Hyun-woo recently said that the company is mapping out a plan to build a third factory in Vietnam to make airplane engine parts for Rolls-Royce.
The company has recently signed a contract with Rolls Royce, a global aviation engine manufacturer, to supply engine parts amounting to 1 trillion won.
Shin disclosed the business plan at a meeting with reporters shortly after signing a contract with Rolls-Royce at the latter’s main office in Derby, the United Kingdom, on Nov. 5 (local time). The gist of the contract is to supply core components for Rolls-Royce's latest engines for 25 years from 2021.
"Rolls-Royce has about 700 suppliers, and we are among the top five," Shin said. "We could strike the deal as we are regarded as a reliable partner by Rolls-Royce." Shin stressed that Hanwha Aerospace will supply engine parts requiring core technology to Rolls-Royce for the first time during its 30-year-long partnership with the U.K. engine producer.
Shin said that he was proud of the fact that the first and second factories built in Vietnam last year were operating stably without problems. "It usually takes six months to receive quality approval from Rolls-Royce. But we succeeded in one month," Shin said.
Shin also made it clear that Hanwha Aerospace’s partnership with Rolls-Royce could be upgraded to RSP international joint development in the future. Rolls-Royce grants a few companies partner status in joint development. "We can naturally become an RSP partner of Rolls-Royce if we receive long-term agreement (LTA) orders," Shin said.
In addition, Shin also suggested a direction to expand RSP partnerships with the world's three major aviation engine companies including General Electric (GE) and Pratt & Whitney (P&W). "In terms of parts supply, Hanwha Aerospace is the number one company in the world but in the RSP sector, we are aiming at breaking into the top five by 2025. We will focus on growing into a key player in the RSP sector."