First Delivery of the F35 Outboard Wing
Common Stock Listed
Trading Symbol: AVP
VANCOUVER, Jan. 19, 2012 /PRNewswire/ - At a ceremony held at its Delta, B.C facility today, Avcorp Industries announced the delivery of the first F-35 Carrier Variant Outboard Wing (CV-OBW) production unit intended for in-service operation. The Honourable Julian Fantino, Associate Minister of National Defence, attended the ceremony along with special guests from BAE Systems and Lockheed Martin. Avcorp will deliver the first production unit direct to the final assembly line at Lockheed Martin Aeronautics in Fort Worth, Texas, USA.
"This first delivery marks a critical milestone for the Company, our suppliers, the F35 Program and the Canadian Aerospace Industry here in lower mainland" said Avcorp President and CEO Mark Van Rooij. "The Outboard Wing is regarded as one of the most complex assemblies that the Canadian aerospace industry contributes to the F-35 program and we are honored to have Minister Julian Fantino here with us today to share in this very important event."
Avcorp secured the F-35 Outboard Wing contract in 2009, following a period of close collaboration with Industry Canada, BAE Systems and Lockheed Martin. Planning and rollout of manufacturing capabilities and quality systems occurred throughout 2010 with initial production beginning mid-2010.
Avcorp is currently the single source for this critical assembly. The Outboard Wing is the foldable portion of the wing on the carrier version of the F-35. It allows for easier handling and storage of the aircraft on the Carriers' deck and hangers, while keeping its long-range and low-landing speed flight characteristics. The Outboard Wing will be fitted onto the first production standard F-35 carrier version.
Avcorp is currently contracted to 260 ship sets, with opportunity to secure 340+ ship sets of Outboard Wings for the F-35 (CV). The total estimated value including the additional opportunity could be over $500 million over 10 to 15 years of production. This program creates more than 75 family wage jobs at Avcorp and supports many more in the local community.
Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including Boeing, Bombardier, BAE Systems and Cessna. With more than 50 years of experience, 483 skilled employees and 354,000 square feet of facilities, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light weight, strong, reliable structures. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX: AVP).
About BAE Systems
BAE Systems is a global defence, security and aerospace company with approximately 100,000 employees worldwide. The Company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. In 2010 BAE Systems reported sales of £22.4 billion (US$ 36.2 billion) and customers in more than 100 countries.
About Lockheed Martin
Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 126,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation's 2010 sales from continuing operations were $45.8 billion.
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.