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GE to Manufacture CH-53K Helicopter Engines Under $143M Navy Contract

General Electric‘s (NYSE: GE) aviation business has received a $143.4 million contract from the U.S. Navy to for the low-rate initial production of lots 1 and 2 turboshaft engines for CH-53K heavy-lift helicopters.

The Defense Deparment said Thursday GE Aviation will supply 22 T408-GE-400 engines, peculiar support equipment and spares as well as provide programmatic and logistics services under the contract.

Lockheed Martin‘s (NYSE: LMT) Sikorsky subsidiary is manufacturing the first batch of CH-53K helicopters under a $304 million contract modification the Navy awarded in September.

Production of the engines will occur at GE’s facility in Lynn, Massachusetts, and work is scheduled to be completed in July 2021.

The Navy obligated the full contract amount at the time of award from its fiscal 2017 and 2018 aircraft procurement funds.

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