Under the long-term agreement, Rolls-Royce will deliver approximately 600 engines for all variants of the C-130J aircraft until 2025.
Specifically, the agreement will service US Government and International contract requirements between 2014 and 2018.
Rolls-Royce Defence president Tom Bell said the two companies have partnered for decades to produce thousands of the world’s leading medium transport aircraft.
"Our new engine agreement secures that relationship for years to come, enabling operators to continue to enjoy the versatile, powerful and fuel efficient aircraft they have come to appreciate through one million flight hours and counting," Bell said.
Lockheed Martin C-130 Programs vice-president and general manager George Shultz said the agreement represents a significant step in the delivery of an affordable airlifter to customers.
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"The C-130J Super Hercules has proven the ‘value of the power’ as the Rolls-Royce AE 2100 propulsion system allows the Super Hercules to perform any mission, anywhere, any time," Shultz said.
Manufactured, assembled and tested in Indianapolis, US, the AE 2100 engine has been developed to power the new generation of high-speed regional aircraft in the 50 to 70 seat category, military transports and long-range maritime patrol aircraft.
A turboprop derivative of the T406 turboshaft engine, the AE 2100 is coupled with a new technology six-bladed Dowty propeller for use on the Saab 2000 and the C-130J Hercules airlifter.
More than 1,500 AE 2100 engines have been delivered by Rolls-Royce to Lockheed’s Marietta, Georgia facility in US.
Around 300 C-130J are currently used across 16 different mission types by military customers in 16 countries worldwide.
Image: Rolls-Royce AE 2100 engine production at Indianapolis, US. Photo: © Rolls-Royce plc 2014.