Trans-Pacific Aerospace Company, Inc. (“TPAC” or the “Company“) (OTCQB:TPAC),
a manufacturer of spherical bearings for the commercial aerospace
industry through its China-based subsidiary, is pleased to announce that
it has signed a Letter of Intent (“LOI”) with AVIC Harbin Bearing
Corporation, Ltd. (“AVIC Harbin”) to form a joint venture (“JV”) to
produce plain spherical bearings and to improve manufacturing
methodology for all bearings. Additionally, TPAC will advise AVIC Harbin
on management and operations.
AVIC Harbin is the preeminent aerospace bearing manufacturer in China.
With over 3 million square feet of manufacturing space under roof and
state-of-the-art machinery and equipment, AVIC Harbin is in a position,
through the JV with TPAC, to provide first in class quality bearings to
the worldwide aerospace industry. AVIC Harbin is AS9100 approved and
manufactures key components for the COMAC C919. Its parent, AVIC, has as
its major OEM customers Boeing, Airbus, Embraer and Bombardier. TPAC
anticipates its AVIC Harbin JV will enjoy the same customer base that
currently exists with AVIC. AVIC has sales in excess of $45 billion USD
annually, through its various divisions, including AVIC Harbin. TPAC and
AVIC Harbin expect to finalize a JV agreement sometime during the third
quarter of 2014 and immediately move forward with the qualification of
the Harbin facility. TPAC anticipates revenue shortly after the
finalization of the JV with potential first year revenue of $10 million
USD+.
“We are thrilled with this LOI and anticipated joint venture,” said
Trans-Pacific Aerospace’s CEO, Bill McKay. “This is a project that we
have focused on for a long time, having first visited the Harbin
facilities 20 years ago. AVIC Harbin is deeply committed to the
aerospace industry and becoming a major player in the international
aerospace bearing market. The anticipated JV has the capability and
capacity to achieve this goal within a relatively short time period and
the staffs at TPAC and AVIC Harbin are committed to this goal. All
parties are excited to push this synergistic relationship forward.”
About Trans-Pacific Aerospace
Trans-Pacific Aerospace is in the business of designing, engineering and
manufacturing self-lubricating spherical bearings for commercial
aircraft, with planned product extensions using similar proprietary
technology into maritime, power plant and space applications. To date,
Trans-Pacific Aerospace’s operations have focused on assisting its
Chinese subsidiary, Godfrey (China) Limited, in the development of its
production facility in Guangzhou, China and to design and engineer
Godfrey’s initial product line of spherical bearings. Godfrey has a
special operating license granted by China's Ministry of Science and
Technology. Godfrey has obtained US Navy (SAE parts) qualification on
its facility in Guangzhou and is currently the only manufacturer for
commercial qualified spherical bearings in China (www.tpacbearings.com).
Forward-Looking Statements
This press release contains forward-looking statements concerning
Trans-Pacific Aerospace within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Those forward-looking statements
include statements regarding Trans-Pacific Aerospace’s expectations for
the certification of Godfrey’s Guangzhou, China production facility; the
commencement of manufacturing of Godfrey’s initial product line of
spherical bearings; continued growth of the market for component parts
of commercial aircraft; and the potential sale of Godfrey’s bearing
products. Such statements are subject to certain risks and
uncertainties, and actual circumstances, events or results may differ
materially from those projected in such forward-looking statements.
Factors that could cause or contribute to differences include, but are
not limited to, risks related to Godfrey’s inability to obtain the
capital or human resources necessary to commence manufacturing of its
bearing products; the inability to successfully market Godfrey’s bearing
products to the commercial aerospace industry; and the inability of
Trans-Pacific Aerospace and Godfrey to acquire additional capital as and
when needed, and those other risks set forth in Trans-Pacific
Aerospace's annual report on Form 10-K for the year ended October 31,
2013 filed with the SEC on February 13, 2014 and subsequently filed
quarterly reports on Form 10-Q. Trans-Pacific Aerospace cautions readers
not to place undue reliance on any forward-looking statements.
Trans-Pacific Aerospace does not undertake, and specifically disclaims
any obligation to update or revise such statements to reflect new
circumstances or unanticipated events as they occur.
Copyright Business Wire 2014