Korea Aerospace Industries (KAI) announced on June 27 that it has signed a supply contract with Collins Aerostructure, a leading U.S. aerospace parts manufacturer, for engine nacelle components used in Airbus A350 and A320NEO aircraft.
This contract covers core components of engine nacelles, with a business period starting from 2027 for ten years and an estimated total value of approximately 140 billion won.
The engine nacelle is a critical part that covers and protects the aircraft engine. It not only safeguards the engine but also enhances overall aircraft efficiency by improving airflow around the engine and reducing noise emissions.
KAI previously demonstrated its technological capabilities through a 34.7 billion won supply contract in 2023, which involved the production and supply of machined parts for engine nacelles on three commercial aircraft types (B787, A320NEO, A220).
With this recent large-scale contract, KAI has further expanded its portfolio in the engine nacelle sector, strengthening its position in aircraft component supply. Collins Aerostructure recognized KAI’s technical expertise, quality standards, and crisis management capabilities amid supply chain challenges, choosing KAI as a strategic partner.
Beyond engine nacelle components, KAI is also recognized globally for its versatility in processing complex aircraft parts such as aircraft connection points, landing gear, engine mounting structures, and large aircraft fuselage and wing structures.
In 2023, KAI signed a 130 billion won contract with Boeing for the supply of critical structural components for five aircraft models, including B767, B767-2C, B777X, and B787. Last December, KAI also extended a supply agreement with Boeing for B737 MAX tail cone components, worth over 11 trillion won, further attesting to its technological capabilities.
A KAI official stated, “In addition to military aircraft like KF-21, FA-50, and Surion, KAI’s expertise in commercial aircraft structural components is gaining recognition in the global market. As the commercial aircraft business continues to grow post-COVID-19, we plan to significantly develop this sector as a core pillar of our future growth strategy.”

