GE Aerospace acquires CPP for $11.75 billion but rules out broader vertical integration strategy
Why It MattersThe deal signals engine makers tightening control over critical casting supply without abandoning broader reliance on external suppliers to ease bottlenecks.
GE Aerospace has acquired Consolidated Precision Products (CPP) for $11.75 billion to expand its supply of precision-cast metal parts used in jet engines, including turbine blades and vanes. The company unveiled the deal last week.
Despite the scale of the acquisition, GE Aerospace's CFO said the CPP deal represents a unique situation and is not a blueprint for broader vertical integration. The company said it continues to rely heavily on external suppliers and is using lean operational tools — including its FLIGHT DECK model and PFEP planning methodology — to address supply-chain bottlenecks across its global footprint.
GE Aerospace plans to use the FLIGHT DECK operational model to improve CPP's delivery performance, expand production capacity, and accelerate deployment of new airfoil technology.
On engine deliveries, GE Aerospace expects stronger year-on-year and sequential growth in GEnx engine deliveries in the third quarter.
