Defense firm Alliant Techsystems won a contract Wednesday to make commercial aircraft engine parts for Rolls-Royce, an expansion of Alliant's nondefense business.
The $200 million contract calls for Minneapolis-based Alliant to make light, nonmetal containment cases that surround the fan blades of Rolls-Royce's new Trent XWB engines. Rolls-Royce has orders for 1,000 of the engines, which will power the new Airbus A350 Extra Wide Body class of airplanes.
Alliant officials said they expect sales of the cases to reach $1 billion by the end of this year, as several engine makers have expressed interest.
Alliant's Rolls-Royce fan cases, the first of which will be delivered by year's end, will be made of a carbon-fiber composite that weighs significantly less than metal, thus reducing fuel cost, said Alliant spokesman Brian Grace.
The contract is Alliant's first with Rolls-Royce and its second in the aircraft engine business.
Alliant generates $4.5 billion in annual revenue largely by making missiles, ammunition, satellite parts and space shuttle rocket boosters. The Rolls-Royce deal greatly expands its reach into commercial aircraft as at a time when analysts suspect defense spending could slow as the Iraq War winds down.
Jack Cronin, Alliant's mission systems president, said the company's expertise in making composite materials for the space shuttle and defense missiles has helped it leap into commercial aircraft engine parts. "The era of composite aircraft will revolutionize the industry," he said.
Alliant reports quarterly earnings later today. The company's shares closed at $84.29 Wednesday, up 0.36 percent.
