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Lockheed, Rolls-Royce Ink $1B C-130 Engine Deal; Tom Bell, George Shultz Comment

AC130JLockheed Martin Corp. (NYSE: LMT) has agreed to power its C-130J aircraft with Rolls-Royce-built engines under a $1 billion deal signed by both companies.

Rolls-Royce will deliver nearly 600 AE 2100 engines for the C-130J Super Hercules and develop those engines for all C-130J variants through 2025, Rolls-Royce said Wednesday.

The engines are intended to help fulfill requirements for contracts with the U.S. government and international customers from 2014 until 2018.

George Shultz, Lockheed vice president and general manager of C-130 programs, said the company intends for the agreement to deliver airlifter units to customers.

The AE 2100 engines will be installed on all C-130J units and the Rolls-Royce T56 on the legacy C-130 fleet.

Tom Bell, Rolls-Royce president of defense, said the deal extends the companies’ previous partnership on medium transport aircraft production.

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