Rolls-Royce Receives $154M Air Force C-130J Spare Engines, Sustainment Contracts

AC130JRolls-Royce has received $154 million in contracts from the U.S. Air Force to produce spare engines and sustain the propulsion system of the Lockheed Martin-built (NYSE: LMT) C-130J aircraft.

Rolls-Royce will complete the production of AE 2100 engines for the Air Force and Saudi Arabia under a $77.9 million foreign military sales agreement by Dec. 31, 2016, the Defense Department said Wednesday.

The AE 2100 engine is designed to power transports, maritime patrol aircraft and regional aircraft.

The company will also perform logistics, program management and engineering services for the C‐130J propulsion system through Jan. 31, 2017, under a separate $76.1 million contract.

Rolls-Royce will perform work at its Indianapolis, Indiana-based facility.

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