VANCOUVER, Oct. 15, 2015 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company", "Avcorp" or the "Avcorp Group") is pleased to announce it has been awarded its first purchase contract from Lockheed Martin. The scope of this agreement will complement Avcorp's existing manufacturing of the F-35 Carrier Variant ("CV") Outboard Wing ("OBW") integrated assembly. Avcorp has been manufacturing OBW assemblies under a long-term contract with BAE Systems since 2011. The additional Lockheed Martin purchase contract will begin with production in the second quarter 2016 and first deliveries in the third quarter.
"We are extremely pleased to have been selected as a supplier partner to Lockheed Martin, one of the world's leading aerospace Original Equipment Companies. The F-35 Program is an important part of our business strategy. With this opportunity we are committed to providing best value to our customer and the JSF Program. We believe demonstrating our full capabilities to Lockheed Martin will open the door for additional collaborative efforts," states Peter George, CEO of the Avcorp Group.
The Avcorp Group 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 388 skilled employees and 340,000 square feet of facilities at our Avcorp location in Delta BC which is dedicated to light weight metal manufacturing and assembly and at our Comtek location in Burlington ON which is dedicated to composites manufacturing and repair, the Avcorp Group 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 Industries Inc. is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).
Avcorp is currently a single-source supplier to BAE Systems for the manufacture and assembly of the CV OBW main structure. The OBW structure is comprised of Titanium, Aluminum and Composite structure sub-assemblies as well as numerous components for a variety of hydraulic and avionic sub-systems. The Lockheed Martin new scope includes paint preparation work as well as the installation of control surfaces and systems such as the outboard leading edge flaps, ailerons, fairings and sub-systems. The OBW will continue to be delivered directly to Lockheed Martin's Final Assembly and Check Out facility in Fort Worth, Texas, USA. The JSF Program is forecasting the additional production of over 300 F-35 CV aircraft over the next 20-25 years.
CHIEF EXECUTIVE OFFICER, AVCORP GROUP
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.