Avcorp Signs Production Development Contract with Boeing
Common Stock Listed
Trading Symbol: AVP
DELTA, BC, Aug. 9, 2012 /PRNewswire/ - Avcorp Industries Inc. ("AVP" or the "Company") is pleased to announce that it has received a purchase contract from Boeing Defense, Space & Security for the production development and supply of a prototype "Ruddevator," a flight control system for stabilization and directional control of air-to-air refuelling booms for the KC-135 Tanker Fleet. The prototype redesign incorporates new processes and materials meant to enhance the reliability of the Ruddevator.
Avcorp has manufactured and supplied Boeing with various aircraft components, including Wheel Well Fairings for the Next-Generation 737, and CH-47 Chinook Helicopter Cockpit Enclosure assemblies.
"Avcorp is excited to be given this opportunity to further demonstrate our extensive and world-class Metal Bond technology and Assembly capabilities on the KC-135 Program," said Mark van Rooij, President & CEO of Avcorp.
This contract with Avcorp is in line with Canada's Industrial & Regional Benefits (IRB) policy and is an integral part of Boeing's IRB programs in Canada. 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 several active IRB programs tied to the purchase and sustainment of four C-17 airlifters - designated CC-177 for Canadian Forces; the procurement of ScanEagle unmanned aircraft systems services; the purchase of 15 CH-47F Chinook medium-to-heavy-lift rotorcraft - designated CH-147 for Canadian Forces; and the Mercury Global program. Through these programs, Boeing continues a history of more than 90 years of 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, Bombardier, and Cessna. With more than 50 years of experience, over 500 skilled employees and 354,000 square feet of facilities, 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. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).
MARK VAN ROOIJ
CHIEF EXECUTIVE OFFICER
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.