The advanced composites manufacturer Hexcel announced on Monday that it has renewed and expanded its long-term supply agreement with aircraft manufacturer Boeing. Under the new agreement, Hexcel will continue to supply key composite materials such as carbon fiber, honeycomb structures, and prepregs for multiple Boeing commercial aircraft programs.

Hexcel stated in a press release that the new agreement covers major aircraft models including the Boeing 737 MAX, 787 Dreamliner, and 777X, while also increasing material supply for Boeing's new sustainable aircraft projects. The agreement's term has been extended to 2035, reflecting the deep collaboration between the two parties in the materials supply chain.

Hexcel is a globally leading supplier of aerospace composites. Its products are widely used in aircraft fuselages, wings, and interior components, significantly reducing aircraft weight and improving fuel efficiency. Boeing is one of Hexcel's largest customers, accounting for a substantial portion of its aerospace business revenue.

The CEO of Hexcel stated in a declaration that this contract renewal represents a continuation and deepening of a partnership spanning over 40 years. He noted that as the global aviation industry recovers and Boeing increases production rates, a stable supply of materials is crucial for meeting customer delivery schedules.

Boeing is currently focused on increasing the monthly production rates of the 737 MAX and 787, while advancing the certification and delivery of the 777X. This agreement helps ensure the long-term supply and cost control of its key raw materials.

While the specific financial terms of the agreement were not disclosed, Hexcel indicated that the pact provides stronger visibility for its revenue over the next decade. The company plans to utilize the agreement framework to optimize production capacity at its facilities in the United States and Europe to meet Boeing's growing material demands.

Boosted by this news, Hexcel shares rose approximately 0.4% on Monday on the New York Stock Exchange. Boeing did not issue a separate statement on the matter. The two companies are expected to provide further details on the collaboration at upcoming aviation industry conferences.