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Sun, May 24, 2015

GE Aviation, Woodward Combine Fuel Systems Expertise For New Joint Venture

JV Awarded Fuel System For GE9X Engine Powering The New Boeing 777X

Woodward has announced a strategic 50/50 joint venture for fuel systems for GE's large commercial aircraft engine lines. The new joint venture will design, develop, source, supply and service the fuel system, including components from the fuel inlet up to the fuel nozzle, for the GE90, GEnx, GE9X and all future large commercial engines developed by GE Aviation. Woodward will be the preferred supplier to the joint venture.

"The fuel systems are a key component to GE's advanced technology aircraft engines, and Woodward has a strong reputation in fuel systems development and manufacturing," said David Joyce, President and Chief Executive Officer of GE Aviation. "The joint venture will further strengthen both companies' capabilities and secure a high quality fuel systems supplier for GE's record production volume on large commercial engines."

Production rates for jet engines and components from GE Aviation have increased significantly during the last five years, with large commercial engine production more than doubling to close to 500 engines in 2015. With a backlog of more than 1,600 high-thrust engines like the GE90, GEnx and GE9X, the high production rates will continue well into the future.

"This deal formalizes and strengthens the longstanding relationship between Woodward and GE and captures significant content on the new GE9X," said Tom Gendron, Chairman and Chief Executive Officer of Woodward. "We believe the joint venture structure will leverage both companies' respective strengths and optimize fuel system performance."

Under terms of the joint venture agreement, Woodward will receive $250 million in cash and the parties will participate jointly in the operating results of the respective programs. Completion of the transaction is subject only to customary regulatory approvals, and it is expected to close near the end of calendar 2015.

This joint venture with Woodward and the related program award is in line with GE's strategy to ensure a stable supply chain to manage production volume growth. Among the other notable joint ventures are partnerships with Aircelle, BAE, NCK, Parker Hannafin, Safran, SKF and Turbocoating SPA.

(Image from file)

FMI: www.woodward.com, www.ge.com/aviation

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