By Allison Lampert and Nandan Mandayam
Sept 15 (Reuters) – Honeywell Aerospace’s CEO on Tuesday called GE Aerospace’s planned $12 billion acquisition of a castings giant “positive for the industry overall” and sees more opportunities to bring outsourced capabilities back in-house.
Aerospace companies are acquiring smaller manufacturers of in-demand parts, or trying to take such production capabilities in-house, as the industry’s supply chain struggles to meet strong demand by planemakers to increase commercial jet output.
Earlier this month, GE Aerospace announced a deal to acquire Consolidated Precision Products (CPP) to address jet-engine supply bottlenecks.
CEO Jim Currier told the Morgan Stanley Laguna Conference that Honeywell Aerospace, which spun off as a separate entity in June, does not compete with CPP and has no overlap within the portfolio.
“Actually, I view that as being a positive for the industry overall. The type of parts that we receive from CPP are very different than the type of parts that GE receives from them,” Currier said.
He added that Honeywell Aerospace has taken steps over the last two years to bring back some of the core technologies and capabilities that the company had outsourced in the past, such as between 2010 and 2019.
“But is there more to be done relative to that? Absolutely,” Currier said. “And I think there’s an ability for us to be able to do that you know, short term and longer term as well.”
(Reporting By Allison Lampert and Nandan Mandayam, Editing by Nick Zieminski)
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