British aerospace firm Meggitt to build US fighter jet engine components for next decade in $750m deal

Aerospace firm Meggitt has has agreed to provide parts for US fighter jet engines for the next decade in a $750m (£582.8m) deal with engine supplier Pratt and Whitney.

The FTSE 250 high-performance part specialist Meggitt will supply advanced engine composites to the US company, which builds engines for the F-22 Raptor and F-35 Lightning II military aircraft for the next 10 years.

The deal comes against the backdrop of US president Donald Trump backing heavy investment in his military, announcing last week the upcoming defence review would include a potential missile defence programme in space.

Meanwhile defence suppliers looking for business in the UK have faced a relatively stagnant market, with Ministry of Defence (MoD) spending having been curtailed in recent years.

Last year it emerged the MoD’s Equipment Plan for 2018-19 is already £7bn over budget and is “not sustainable if the department wants to deliver longer-term value for money,” according to the National Audit Office (NAO).

Meggitt, a UK firm, will also provide components for civil aircraft engines. Its shares jumped nearly two per cent on the news this morning, before settling.

Chief executive Tony Wood, said: “Meggitt is delighted to be working with Pratt & Whitney through this groundbreaking 10 year agreement in support of the F135 and F119 engine programmes.

“These components will be produced in our new state-of-the-art facility in San Diego, California which opened in August 2018 to support the rapid growth in demand for advanced engine composite components across the aerospace industry.”

Ruben Harris, vice president of Pratt & Whitney’s global supply chain said: “We are proud to sign this agreement with Meggitt. Meggitt is a critical supplier for our fourth and fifth generation fighter engine programmes, and we value the long standing relationship.”