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MB Aerospace secures £40m contract extension

19 Jun 2007

MB Aerospace Ltd, one of the main subsidiary groups of MB Aerospace Holdings Ltd, has announced details of two substantial contract extensions from Rolls-Royce plc with predicted values of up to £40m for the life of the contracts.

MB Aerospace’s Motherwell site has been awarded a three year extension to supply Rolls-Royce plc with machined ring components for use in a range of its production built aero engines.

Meanwhile, the company’s Burnley site has been awarded a five year extension to the contract it secured in 2005, to manage the supply chain for aftermarket engine ring components for gas turbine engines on mature platforms.

MB Aerospace already has an extensive order book with Rolls-Royce plc and these latest contracts will run concurrently with existing orders.  The contracts will be managed across the company’s two sites utilising its supply chain management capabilities at the Burnley site and its product manufacturing cells at Motherwell.

MB Aerospace specialises in the supply chain management, integration and assembly of defence systems for a range of global defence contractors including Boeing.

Craig Gallagher, chief executive officer of MB Aerospace Holdings Ltd, said:

We have enjoyed a long standing relationship with Rolls-Royce plc and I’m delighted to have secured these contract extensions which are a great addition to our future order book.

"These contracts, along with the five year aftermarket contract we won in 2005 put us in an extremely healthy position and we can now look forward to continuing the development of our aero-engine supply chain.

"Not only can we now increase our investment in capital equipment and supply chain development but we will be seeking to strengthen our workforce at our sites in Burnley and Motherwell."

The company also has agreements in place to supply Rolls-Royce plc sites in Indianapolis, USA and Germany.

In April 2007 MB Aerospace Ltd and MB Faber Ltd, which were previously part of the Motherwell Bridge group, were sold to new company MB Aerospace Holdings Ltd as part of a management buy-out led by chief executive Craig Gallagher and his finance director Gordon Kerr.

The deal was backed by private equity firm Lloyds TSB Development Capital which has a majority stake in the business.