(Yicai) Aug. 17 -- Shares of Tiancheng Controls advanced after the Chinese automotive seat manufacturer said its British unit has gained an order worth up to EUR21 million (USD22.8 million) for aircraft seats and parts from a Spanish low-cost airline.

Tiancheng's stock price [SHA: 603085] rose by 3.5 percent to CNY9.75 (USD1.30) as of 1.51 p.m., following a 4.9 percent intraday boost.

Acro Aircraft Seating, a subsidiary that makes seats for both Boeing and Airbus planes, has penned a letter of intent with Volotea, a Barcelona-based airline, to supply seats and parts to 67 planes of models Airbus A319 and A320, the Zhejiang province-based firm said in a statement yesterday. The contract will be worth between EUR16 million and EUR21 million.

The pair still needs to ink a separate supply contract to finalize the deal, the Chinese firm said, adding that Volotea intends to buy more seats and parts based on its business plans in the future.

The delivery cycle will be long so the deal will have no big impact on Tiancheng's business performance this year but it should positively affect its aviation business recovery and growth in years to come.

The Covid-19 pandemic was tough for aviation suppliers and Tiancheng is no exception as the firm's aircraft segment logged a 26 percent revenue decrease to CNY209 million (USD28.9 million) last year from 2021, still making up almost 15 percent of its total, according to the annual report.

Editor: Emmi Laine