Alliant lands $1 billion Airbus deal

Alliant Techsystems, a major supplier for U.S. military and space programs, has scored its largest commercial contract in the company's history, disclosing Monday that Airbus has selected it to make about $1 billion worth of parts for its new A350 airplanes

November 17, 2009 at 3:28AM

Alliant Techsystems, a major supplier for U.S. military and space programs, has scored its largest commercial contract in the company's history, disclosing Monday that Airbus has selected it to make about $1 billion worth of parts for its new A350 airplanes.

Alliant Tech, based in Eden Prairie, will make composite parts for the twin-aisle airplanes at a plant in Iuka, Miss. The life of the contract is more than 10 years.

The company has been trying to diversify its revenue base as its government-funded businesses, particularly the space program, are under review. In recent years a majority of its revenue has come from federal projects.

Weight-cutter and fuel-saver

Brian Grace, an Alliant Tech spokesman, noted that his company is already one of the "world's leading suppliers of composite aircraft structures," and it has patented technologies in the composite manufacturing area. "The A350 will be the first Airbus aircraft with fuselage and wing structures made primarily of carbon fiber," he said.

That will make it lighter than conventional aircraft. Less weight means burning less fuel, the biggest expense for many airlines. Airbus said the A350, which will combine 53 percent composite materials with titanium and new generation aluminum alloys, will produce fuel savings of about 25 percent compared with planes now in operation.

Specifically, Alliant Tech will make parts for the A350 XWB, which means an extra-wide-body airplane with dual aisles. Depending on the model and configuration, the A350 can seat from 270 to 350 passengers and fly medium- to long-range trips.

Airbus spokeswoman Maryanne Greczyn said the first A350 will be delivered in 2013, but it's unclear who will be the first customer to fly the plane. Airbus announced this week that Ethiopian Airlines has become the 32nd carrier to order the A350 XWB, and the France-based planemaker now has 505 firm orders.

Alliant Tech, which last week projected fiscal 2010 sales of up to $4.875 billion, also has a contract with Rolls-Royce to make parts for the engines that will power the planes, Grace said. That contract is valued at more than $200 million.

Grace said Alliant Tech is also building engine parts for Boeing's next generation aircraft under contract to General Electric.

At peak production for the A350, Grace said Alliant Tech expects to increase employment by about 200 jobs in Mississippi.

Also Monday, reusable solid rocket motors produced by Alliant Tech were used to launch the Atlantis space shuttle.

Alliant Tech's stock on Monday rose $1.14, or 1.32 percent, to close at $87.37 a share.

Liz Fedor • 612-673-7709

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LIZ FEDOR, Star Tribune

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