Avcorp Signs Production Contract with Boeing
VANCOUVER, Aug. 9, 2013 /PRNewswire/ - Avcorp Industries, Inc. is pleased to announce that it has received a purchase contract from The Boeing Company for the production and supply of Tunnel Cover Assemblies for the CH-47 Chinook Helicopters. Each shipset of Tunnel Covers consists of several large and complex metal bonded aerostructures. These Tunnel Covers act as access covers to the driveshaft, which runs between the two main rotors of the aircraft.
Avcorp has manufactured and supplied Boeing with various aircraft components, including Wheel Well Fairings and Wing tip Panels for the Next-Generation 737, and CH-47 Chinook Helicopter Cockpit Nose Enclosure assemblies, for more than 20 years.
"This new contract underscores the importance of our long-standing partnership which continues to support highly-skilled aerospace jobs within Canada." said Mark van Rooij, President & CEO of Avcorp. "We are proud that our partnership with Boeing continues to provide us with opportunities to contribute to a key platform."
This contract for the Tunnel Cover Assemblies is aligned with Boeing's 90-year history and long-term commitment to engage with Canadian industry in areas of high value aerospace work. This contract was awarded to Avcorp based on their capabilities and competitiveness, as well as, how this new work will support the fulfillment of Boeing's Industrial & Regional Benefits (IRB) programs. Canada's IRB policy requires prime contractors, such as Boeing, to make investments in the Canadian economy as a result of winning defense and security contracts with the government of Canada. Boeing has four active IRB programs tied to the procurement of the CC-177 airlifter and support; ScanEagle unmanned aircraft system, CH-147 helicopter and support, and the Mercury Global program. Through successful implementation of these IRB programs, Boeing continues to support Canada's position as a global leader in aerospace by creating long-term, high-value opportunities with Canadian industry. See www.boeing.ca.
Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, and Bombardier. With more than 50 years of experience, over 400 skilled employees and 354,000 square feet of facilities in Delta BC and Burlington ON, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower‐cost, light weight, strong, reliable structures. Our Burlington location also offers composite repairs for commercial aircraft. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).
MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER
This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (www.sedar.com).
Certain statements in this release and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent to which the Company is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (i) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) the Company's ability to maintain portfolio credit quality; (o) the Company's access to debt financing at competitive rates; and (p) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.
SOURCE Avcorp Industries Inc.