Satair has signed a new global and exclusive distribution agreement with Eaton
Aerospace, one of its major existing suppliers and a leading supplier of
aerospace systems to aviation. The new product lines are expected to generate
revenue in the region of USD 40 million within a few years. The agreement is
reflective of Satair's ongoing active efforts to expand its product portfolio
and strengthen the Group's total product offerings.
The agreement with the Eaton Aerospace Fuel Systems Division in Titchfield,
England, and is an expansion of the existing close cooperation between Satair
and Eaton which began in 1991. Satair is already the distributor of several of
Eaton Aerospace's large product lines. Eaton Aerospace is one of Satair's
largest suppliers.
”Satair has intensified the strong cooperation with Eaton Aerospace on an
ongoing basis. The signing of the new distribution agreement enables us to
offer customers a broader product portfolio, and this will generate additional
growth for Satair. We are extremely pleased about the new agreement, and we see
it as a clear sign that Eaton Aerospace recognizes the added value that we are
capable of contributing by taking products closer to customers and creating
higher customer satisfaction. The agreement is also an important step in the
fulfilment of Satair's growth strategy, as an expansion of distribution
contracts with our major suppliers is an efficient growth driver”, explains
John Stær, CEO of the Satair Group.
The agreement in brief
Scope: Global and exclusive 10-year agreement.
Customer groups: Primarily commercial aftermarket operators (airlines and
maintenance providers).
Products: Mainly electric fuel pumps, valves, pressure transducers,
temperature detectors and other components related to the
fuel systems of aircraft. The products are used in an array
of aircraft types, including all Airbus aircraft, and Eaton
is also the supplier of the fuel pump system chosen for
Boeing's new flagship, the 787 Dreamliner. Satair has been
trading in products from the Eaton Aerospace Fuel Systems
Division in Titchfield for several years, however not as a
distributor. The products currently contribute some USD 5
million in revenue.
Revenue: The new product line is forecast to contribute approx. USD
10 million to Satair's revenue in fiscal 2010/11, and the
annual revenue contribution is expected to grow to USD 40
million within a few years.
Investments in
inventories: The implementation of the agreement will require Satair
to invest approx. USD 8 million in inventories.
The new agreement will not have any effect on revenue or earnings in the
current fiscal year ending in late June 2010. The earnings effect of the
agreement will be included in the outlook for fiscal 2010/11 to be announced in
September 2010 together with Satair's Annual Report 2009/10.
