US-based aerospace and industrial component provider Woodward has formed a 50-50 joint venture (JV) with GE Aviation to develop large engine fuel systems for GE’s commercial aircraft portfolio.

The JV expects to design, develop, source, supply and service fuel system components, including the inlet and fuel nozzle for GE’s high-thrust engines such as GE90, GEnx, GE9X and all large commercial engines to be developed by GE Aviation in the future.

Under the deal, GE Aviation paid $250m to Woodward for the acquisition of equity interest in the JV.

With the amount received from GE, Woodward will buy back outstanding shares over the next 12 months.

Both GE and Woodward will equally participate in operating results of the JV, while Woodward will act as the ideal supplier of the partnership. The partnership will increase Woodward content on the GE9X engine compared to the GE90 engine.

The partnership to form the JV between GE and Woodward was announced in May last year.

"The joint venture expects to design, develop, source, supply and service fuel system components."

Woodward chairman Tom Gendron said: "This deal formalises and strengthens the longstanding relationship between Woodward and GE and captures significant content on the new GE9X.

"We believe the joint venture structure will leverage both companies’ respective strengths and optimise fuel system performance."

Over the last five years, GE has increased the production of jet engines and components, including large commercial engine production, which has doubled by nearly 500 engines in 2015.

The company expects to continue the trend and plans to produce more than 1,600 high-thrust engines over the next few years.

Under Woodward’s $250m share repurchase programme, the company closed $125m in share repurchases through an accelerated stock repurchase programme in the second half of fiscal year 2015.

The company expects to end the remaining $125m in share repurchases during the first half of this fiscal year.