Hexcel sells its BHA joint venture interest to Boeing

Hexcel Corporation completed the sale of Hexcel’s share in for $22.3 million to the Boeing Company. The agreement increases Boeing ownership to a majority position in the joint venture with China’s Aviation Industry Corporation I (AVIC I) holding the remaining minority stake, as announced on July 18, 2008. Concurrently, the existing supply and material procurement agreements among BHA, Hexcel and Boeing are affirmed and reflect continued long-term work commitments by Boeing that will ensure Hexcel assembly of BHA components for Boeing as well as the supply of Hexcel materials to BHA.

David E. Berges, Chairman and CEO of Hexcel, said, “We are proud of the work the Hexcel team did to help build BHA into a world class operation, and we are excited about the opportunities for Hexcel as Boeing further expands BHA’s operations. The continuation of our long term supply agreement with Boeing and BHA will ensure an important revenue base and low cost component supply for our Engineered Products group well into the future. Additionally, we will continue to benefit from our long term agreement to supply materials to BHA.”

BHA has been a joint venture among Boeing and Aviation Industries of China (AVIC I). The joint venture, located in Tianjin, China, specializes in producing composite secondary structures and interior parts for the aerospace industry.

About Hexcel
Hexcel Corporation is a leading advanced composites company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defence and industrial applications.

Source : Hexcel

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Hexcel sells its BHA joint venture interest to Boeing

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