Timken has been contracted by the US Department of Defence to supply main reduction gears (MRGs) to Philadelphia Gear for incorporation into the US Navy's next-generation of Arleigh Burke DDG 51 class ships.
The multi-year contract has a fixed price and is inclusive of options, which if exercised wholly will bring the value of the order to more than $1bn.
Under the contract, sale of the components is expected to commence in 2017, with cumulative sales being directly proportional to the number and timing of options exercised by US Navy officials.
Additionally, the company will also provide its engineering support.
Timken Power Systems group vice-president Carl Rapp said: "Philadelphia Gear won the contract to supply MRGs for the re-start of the DDG programme in 2010 and, through the years, we have strived to deliver a quality product, on-time, and provide fleet support globally wherever the navy serves our nation."
Under the contract, Timken is expected to supply MRGs to Philadelphia Gear for roughly a decade.
Rapp added: "As a result of our work with the navy, our teams are prepared to meet the challenge of building reliable propulsion drives to support the demanding mission requirements of the DDG class for years to come."
Propelled by four gas-turbine propulsion plants, the 509ft-long DDG 51-class multi-mission guided missile destroyers have a displacement capacity of 9,500t, can cruise at a speed of 30k, and are equipped with advanced sensors, as well as weapons systems to engage anti-ship missile threats.
It is equipped to perform a range of operations, from peacetime presence and crisis management to sea control and power projection, as well as simultaneously engagement in air, surface and subsurface battles.