Shares of Ducommun Inc. rose 4 percent on Tuesday after the Carson aerospace contractor said it won a multiyear contract to make complex printed circuit board assemblies for the fuel management system of the Airbus A350 jetliner.
The contract is with Parker Aerospace, a unit of Parker Hannifin Corp. of Cleveland, and has potential value of more than $20 million. Ducommun’s manufacturing plant in Appleton, Wis. is expected to start production by the middle of next year.
This is Ducommun’s first major Airbus contract with Parker Aerospace. The company also won a smaller contact with Parker for retrofit fuel tank system assemblies on other planes in the Airbus fleet. That contract is worth more than $1 million through next September, and the company expects follow-on orders.
“We see a great future expanding our business on the Airbus platforms, particularly through partnerships with companies such as Parker Aerospace,” Chief Executive Anthony J. Reardon said in a statement.
Shares closed up $1.50, or 4 percent, to $26.40 on the New York Stocks Exchange.