Benzinga | Nov 19, 2021 03:37PM EST

Embraer's OGMA Inks New Agreement With Pratt & Whitney On GTF Engine Maintenance

* Embraer SA's (NYSE:ERJ) OGMA signed a new contract with Pratt & Whitney, a Raytheon Technologies Corp (NYSE:RTX) company, to include maintenance of GTF engines that power E190-E2 and E195-E2 aircraft.

* OGMA joined Pratt & Whitney's GTF MRO network last year to maintain PW1100G-JM GTF engines, which power the new generation of commercial aircraft, namely the Airbus SE (OTC:EADSF) A320neo family. The capability is extending to include the PW1900G engine this year.

* OGMA is investing (euro)80 million in total, mostly in the first four years of the project.

* Over the 30-year term of the contract between OGMA and P&W, more than (euro)13 billion in revenue is expected.

* The project creates nearly 500 jobs over the next few years and allows OGMA to triple its turnover to about (euro)600 million per year.

* Price Action: ERJ shares are trading lower by 2.69% at $14.82 on the last check Friday.