Airbus and Turkish Aerospace Industries (TAI) signed a memorandum of understanding for the extension of an important supplier contract last Tuesday. A long-standing supplier to Airbus and other EADS business units, TAI manufactures nine single-aisle fuselage section skins per month, a rate Airbus wants to increase to around 15 sets per month.

The contract extension represents a value of some $30 million over the next three years and Airbus hopes to build on cooperation with TAI on the A400M project, as well as use the Turkish company’s design capability to support A350XWB development. The partners will define a design and build contract involving the A350 over the next twelve months, ensuring continued employment of TAI’s design facilities for the next five years.

The value of Airbus work in Turkey has risen from $19 million last year to an expected $40 million in 2008.