GKN Aerospace Services (GKNAS) has strengthened its relationship with Lockheed Martin by signing a five-year $74 million agreement for the supply of nacelles on the C-130J miltary transport. The contract covers 40 USAF and 20 USMC aircraft on order by the US Department of Defense.

The deal begins on 1 January 2004 and GKN says it hopes to achieve cost savings of 30% over the life of the contract through production line security and the implementation of lean and supply-chain-management initiatives, supported by customer advanced funding.

GKNAS has been the sole source supplier of integrated nacelles for the C-130J for nine years, as part of the UK Industrial Support Group for the programme. The new contract calls for the supply of 62 shipsets for a guaranteed minimum of 58 C-130J aircraft, delivered at a rate of 12 shipsets a year.

Ben Bryson, commercial account manager at GKNAS, says: "This is the direction we see many future contracts taking, where customers such as Lockheed Martin work in partnership with us to gain the considerable cost advantages that are achievable through long term commitment to reliable, proven and trusted suppliers."

Source: Flight Daily News