South Korean aircraft maker Korea Aerospace Industries said Tuesday that it has extended its contract with Boeing to produce empennage parts for the US aerospace giant’s 737 Max model. The extension will add 1.12 trillion won ($789 million) in sales to the existing contract.

The Boeing 737 Max – the manufacturer's newest narrow-body model for short and medium-haul passenger flights – carries up to 230 passengers.

KAI has provided vertical and horizontal stabilizers for the model since 2022, and with the six-year extension, their partnership will continue through 2032 from the initial 2026 expiration.

A signing event was held at the Boeing headquarters in Seattle, with KAI CEO Kang Goo-young, KAI Vice President Kim Yong-min and Boeing’s Vice President Cory Gionet in attendance.

KAI has maintained close ties with Boeing since 2004 when the Korean firm began producing aerostructure divisions for the Boeing 737 New Generation model.

“KAI’s technology was appreciated with the company's stable offering of airplane stabilizers, leading to the contract extension. We will do our best to satisfy our customers by providing products on time with our flexible production capabilities,” Kang said at the signing ceremony.

As of the third quarter, KAI's cumulative sales have reached 647 billion won this year, up 16 percent from a year ago, largely boosted by a fast recovery in the air passenger market after years of COVID-19 disruptions.