Triumph Group, Inc. (NYSE:TGI) announced today that its Aerospace Structures business unit entered a definitive agreement to assign the contract for the manufacture of structural components for the Embraer E2 program to AeroSpace Technologies of Korea Inc. (ASTK).
The agreement follows Triumph's January 2018 strategic decision to partner with ASTK to outsource production of the E2 fuselage. ASTK now has responsibility for component fabrication, assembly, and transport of fuselage shipsets to Embraer's E2 Brazilian final assembly facility as ASTK supports the ramp in production following the E2 program's entry into service.
"The assignment of our fuselage manufacturing contract to ASTK, when completed, will allow Triumph to focus on our core complex commercial and military structures and interiors business," said Pete Wick, Executive Vice President of Triumph's Aerospace Structures business unit. "Furthermore, it supports the company's strategic portfolio transformation and enhances our cash flow."
Transition activities are underway with plans for ASTK to ramp to full rate production and build all required fuselages for delivery starting in January 2020. Triumph will continue to support ASTK by producing the rudder and elevator structures for the program out of its Milledgeville, Georgia facility. Triumph will also provide program engineering support.
The assignment of the contract for the manufacture of the structure components to ASTK, which is subject to certain conditions, is expected to occur in the third quarter of the company's 2020 fiscal year.
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures. The company serves the global aviation industry, including original equipment manufacturers and the full spectrum of military and commercial aircraft operators.
More information about Triumph can be found on the company's website at http://www.triumphgroup.com.