TORONTO (CP) -- Magellan Aerospace Corp. says it has struck a deal with jet engine maker Rolls-Royce Plc and its German unit to manufacture mainline shafts and stub shafts for various Rolls-Royce engines.
The work is expected to generate about US$425 million for the Canadian company over the 15-year term of the agreement, Magellan said Wednesday.
Magellan shares charged ahead 67 cents or 30 per cent to C$2.88 in early trading on the Toronto Stock Exchange.
The manufacturing will be done at Magellan\'s Middleton Aerospace plant in Haverhill, Mass.
"Magellan has a longstanding business relationship with Rolls-Royce, and is pleased to enter this agreement and further expand the relationship," said Jim Butyniec, Magellan\'s president and CEO.
"This advancement continues Magellan\'s strategy to expand its core manufacturing capabilities and to invest in state-of-the-art equipment to maintain competitiveness in the global marketplace."
Dan Chaisson, general manager of the Haverhill plant, said: "Magellan will utilize its existing equipment for initial production, but will expand its manufacturing footprint at the Haverhill facility to accommodate the new equipment and processes required to support full-scale production for the program."
The first deliveries from the plant are expected to be made in the second half of this year.
Magellan, which had 3,600 employees at the end of 2008, designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, and associated products.
The company has plants in Canada, the United States, the United Kingdom and India.