GE Aerospace, Hindustan Aeronautics Ink MoU To Make Jet Engines For Indian Air Force

General Electric Co GE subsidiary, GE Aerospace, has signed a Memorandum of Understanding (MOU) with Hindustan Aeronautics Limited (HAL) to produce fighter jet engines for the Indian Air Force.

The move comes amidst the Indian Prime Minister Narendra Modi's official state visit to the U.S.

The agreement includes the potential joint production of GE Aerospace's F414 engines in India.

The effort is part of the Indian Air Force's Light Combat Aircraft Mk2 program.

"Our F414 engines are unmatched and will offer important economic and national security benefits for both countries as we help our customers produce the highest quality engines to meet the needs of their military fleet," said Lawrence Culp, Jr., Chairman and Chief Executive Officer of GE and CEO of GE Aerospace.

The agreement will advance GE Aerospace's earlier commitment to build 99 engines for the Indian Air Force as part of the LCA Mk2 program.

Price Action: GE shares are trading lower by 0.53% at $104.49 in premarket on the last check Thursday.