Published: August 29, 2025, 11:08 a.m. KST
Reporter: So-hyun Kwon
Original Article
Extended until 2028, backlog increases from KRW 43.5 billion to KRW 57.6 billion
Short-term contract ensures profitability and enables flexibility against market shocks
[E-Daily Marketin Reporter Kwon So-hyun] ASTK (067390) announced on the 29th that it has decided to extend its supply contract with Turkish aircraft manufacturer TAI (Turkish Aerospace Industries).
The contract item between ASTK and TAI pertains to structural components used in Boeing’s “B-737-MAX” model, and this is an extension of the supply agreement originally signed in 2022. The extended contract period now runs through 2028. As a result of this contract, ASTK’s order backlog for TAI is expected to increase by approximately 32%, from KRW 43.5 billion (USD 31.32 million) to KRW 57.6 billion (USD 41.47 million), based on the first half of 2025.
However, the amount of KRW 57.6 billion is the estimated total value of the entire contract. ASTK will manufacture and deliver products based on TAI’s purchase orders.
An ASTK official stated, “This contract covers the rear fuselage ‘Section 48’ of the B737-MAX. While it includes some new items, it also contains parts we are already supplying. Therefore, it is a project that can generate immediate profit by reducing the large development costs typically incurred in the early stages of developing new order items.”
He added, “Unlike other contracts that span over 10 years, this agreement is relatively short-term, allowing us to better respond to rapidly changing global trade conditions and the post-COVID collapse of the aviation industry ecosystem. As such, we expect to secure stable profitability.”
