Rohr Signs 2nd $1-Billion Contract for Engine Casings

For the second time this year, Rohr Industries has signed a $1-billion follow-on contract to supply casings for jet engines for commercial airliners, the Chula Vista-based firm announced Wednesday.

Executives of Rohr said they reached an agreement with European manufacturer Airbus Industrie to furnish the aerodynamic structures--known as nacelles--for 800 aircraft. However, the contract will not immediately boost jobs, a Rohr spokesman said Wednesday.

Under the terms of the agreement, Rohr will design and manufacture nacelle systems for the CFM56-5A engines that power Airbus A320 airliners and CFM56-5B engine for the Airbus A321.

With the new contract, Rohr will provide nacelle systems for 1,000 Airbus craft in all, five times more than the 200 planes originally specified under a 1984 contract.

In March, Rohr signed a $1-billion follow-on contact with International Aero Engines to provide nacelle systems for McDonnell Douglas MD-90 jetliners.

Airbus is a consortium owned by Aerospatiale of France, Deutsche Airbus of West Germany, British Aerospace PLC and Construcciones Aeronauticas S.A. of Spain. The IAE consortium includes Pratt & Whitney of the United States, England’s Rolls-Royce and a group of Japanese companies.

Rohr officials said the close working relationship between their European program team and the two European manufacturing consortiums was the key to both agreements.

“This program demonstrates the benefits of bringing together the capabilities of the international aerospace community. This Europe-oriented program continues to be successful and mutually beneficial for us and our customers,” said Don Purdy, vice president of commercial business.

After reporting its first $1-billion sales year in fiscal 1989, Rohr surprised industry observers by announcing an $11.4-million first-quarter loss in October. The company blamed more stringent standards in military programs, which at the time accounted for 25% of Rohr’s business.

However, the company has continued to benefit from an unprecedented worldwide demand for commercial aircraft. Spokesman Roger Renstrom said Rohr’s firm order backlog now stands at $2.6 billion, and the expected backlog represents another $2 billion.

“Our projections are that the high demand will continue,” he said.

Rohr employs 11,400 workers at 10 facilities in the United States and one in Europe. The company reported $759 million in sales for the first three quarters of fiscal 1990.