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Pall Corporation (PLL - Analyst Report) recently entered into an agreement with Brazilian aerospace manufacturer Embraer S.A. (ERJ - Analyst Report) to supply hydraulic filter manifolds and assemblies for its KC-390 aircraft. Embraer KC-390 is a medium-sized military jet that deploys ’Fly-by-wire’ technique to operate flight control system.

The Pall filter manifolds will purify the pressurized hydraulic fluids that power the KC-390’s flight control systems, cargo door and landing gears from contamination, thus improving aircraft reliability. Pall expects to start shipping its components by the end of 2013.

Contamination in the hydraulic fluids of the aircraft can happen through the environment during the manufacturing and routine maintenance and also from component wear and tear. However, if this contamination is not removed in time, there is a risk of it re-circulating, thereby causing oxidization, fluid degradation, reduced system efficiency and ultimately leading to the failure of the associated components.

Therefore, Pall’s hydraulic filters will enable fine filtration and decontamination at regular intervals and eliminate minute particles and water to improve the service life, reliability and performance of the aircrafts hydraulic system. To further strengthen protection for the KC-390’s power systems, Pall is manufacturing the hydraulic manifolds and assemblies based on the latest filtration technology based on the specifications mentioned by Embraer.

Pall is one of the leading suppliers of fluid monitoring equipment to the aerospace industry for use on commercial and military aircraft, ships and land-based military vehicles to help protect critical systems and components. Commercial and Military sales represented 45% and 55%, respectively, of total Aerospace sales in fiscal 2012.

Pall currently has a Zacks Rank #3 (Hold) compared to companies such as Calgon Carbon Corporation (CCC - Analyst Report) and CECO Environmental Corp. (CECE - Snapshot Report), which have a Zacks Rank #2 (Buy) and operate in the same industry.

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