Boeing and France’s Safran have agreed to jointly design, build, and service auxiliary power units (APUs) under a deal announced Monday certain to have repercussions for current suppliers of the components to Boeing commercial aircraft programs. Under the contract, both companies will maintain a 50 percent stake in the partnership, which they will base in the U.S. The sides hope to close the transaction in the second half of this year following the meeting of customary conditions including regulatory and antitrust clearance.

“This strategic partnership will leverage Boeing’s deep customer and airplane knowledge along with Safran’s experience in designing and producing complex propulsion assemblies to deliver expanded, innovative services solutions to our customers,” said Boeing Global Services president and CEO Stan Deal.

Perhaps more significantly, the arrangement will also give Boeing an in-house capacity for APU provision, leaving respective Tier 1 suppliers for the 737 and 787, Honeywell and United Technologies into competitors rather than partners in the field.

“This move will strengthen Boeing’s vertical capabilities as we continue to expand our services portfolio and make strategic investments that accelerate our growth plans,” said Boeing CFO Greg Smith.

Safran has built APUs since 1962, and now supplies a line capable whose largest member can produce up to 500 shp. Larger APUs from Honeywell appear in both the 737 and Airbus A320, while APUs from UTC subsidiary Pratt & Whitney provide auxiliary power for the 787 and Airbus A380.