Ontario manufacturer of gas turbine components flying high in international export markets

Manufacturing sophisticated parts for gas turbine engines has an Ontario company flying high in export markets.

"Eighty to 90 percent of our sales are into export markets in the United States and the European Union," says George Koulakian, Vice President, Operations and Business Development for KK Precision, a manufacturer of highly specialized machined components for aviation, marine and energy applications.

Gas turbines - the engines used to power jet aircraft, ships, and army tanks, and to drive compressors for natural gas pipelines - are sophisticated machines that demand flawless manufacturing.

"Gas turbines face tremendous centrifugal stresses, spinning from 10,000 to 100,000 revolutions per minute at tremendous heat and pressure," says Mr. Koulakian. "The operating environment of a gas turbine is extremely demanding on the materials used. Metal temperatures within an engine can reach as high as 1200 °C, placing enormous stress on components and demanding the highest-quality manufacturing from both an engineering and materials standpoint."

KK Precision's ability to produce these components, using state-of-the-art manufacturing techniques working with super alloys, has won it a wide and growing range of global customers.

A private, Toronto-based  company formed in 1963, KK Precision specializes in manufacturing the complex parts - such as inlet casings, turbine discs, exhaust cases, fuel shut-off valves and combustor components - that are critical elements of today's gas turbine engines.

So good are its components that the company has been rated as a Global Strategic Supplier to Rolls-Royce Aerospace, one of the world's largest suppliers of gas turbine jet engines for both civilian and military aircraft, and counts as its customers international corporations such as General Electric, Husky, and Pratt and Whitney Canada.

KK Precision also has signed a long-term agreement with Rolls-Royce for the supply of casings and assemblies for the Rolls-Royce MT30 Marine Gas Turbine, which now powers the high-speed USS Freedom Littoral Combat Ship and will power the Royal Navy's future aircraft carriers and the US Navy's DDG 1000 multi-mission destroyers.

"Our customers operate in a highly competitive and challenging business environment," says Mr. Koulakian. "To compete and succeed they require components and assemblies manufactured to rigorous specifications."

This challenging business environment is one KK Precision faces as it competes for international sales with both established global suppliers and emerging low-cost international competitors.

"Customers can source their needs globally today, which ratchets up the competition and raises the bar on quality," says Mr. Koulakian.  It's our absolute focus on the quality of our manufactured components that makes us a strong competitor in international markets and fuels our export successes."

This emphasis on quality has driven 12-20 percent annual sales growth in export markets and allowed the company to add 12 new employees in the past four years.

KK Precision initially entered the export field on a shoestring budget and without the luxury of an international sales network.

"We had some successes, but quickly found that we didn't understand the local markets and their rules and regulations, lacked appropriate contact bases, and didn't have access to financing to support our entry into those markets.

The company tapped into the help available from the Ontario Ministry of Economic Development and Trade. "The Ministry provides invaluable assistance to smaller companies like ours," said Mr. Koulakian. "They've helped us establish initial contacts and provided critical information on international markets."

With its international sales base firmly established, the company now is focusing on expanding its roster of clients across Europe and into the Middle East and South America.