VANCOUVER, April 15, 2016 /PRNewswire/ - Avcorp Industries Inc. (TSX: AVP) (the "Company", "Avcorp" or the "Avcorp Group") is pleased to announce that further to the contract award from Lockheed Martin announced on October 15, 2015 for the expanded scope on the F-35 Carrier Variant Outboard Wing ("CV OBW"), Avcorp has received a firm order for the remaining units in the next two production phases, referred to as Low Rate Initial Production ("LRIP") nine and LRIP ten.
Avcorp's established New Product Introduction ("NPI") process will ensure the successful knowledge and skills transfer from Lockheed Martin, required for the intricate work of paint preparation and complex installation of control surfaces and systems such as the outboard leading edge flaps, ailerons, fairings and sub-systems. The NPI planning phase is nearing completion and production will begin in the second quarter 2016. The delivery of the first shipset to Lockheed Martin's Final Assembly and Check Out facility in Fort Worth, Texas, USA is on-schedule for the third quarter 2016, with subsequent confirmed orders extending out to 2018.
"We are excited with the recent collaboration efforts between Lockheed Martin and Avcorp. The resulting increases in efficiency and cost savings to the F-35 Program are a testament to the types of synergy opportunities available to our customers. With the recent acquisition of key composite manufacturing capabilities through our new subsidiary, Avcorp Composite Fabrication ("ACF"), we are in discussions with Lockheed Martin to further expand our role on the F-35 Program," said Peter George, Avcorp Group's CEO.
About Avcorp
The Avcorp Group designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, Bombardier, Fuji Heavy Industries and Lockheed Martin. The Avcorp Group has more than 50 years of experience, over 776 skilled employees and 636,000 square feet of facilities. Avcorp Structures & Integration located in Delta BC is dedicated to metallic and composite aerostructures assembly and integration; Avcorp Engineered Composites located in Burlington ON is dedicated to design and manufacture of small-sized composite aerostructures, and Avcorp Composite Fabrication located in Gardena CA has advanced composite aerostructures fabrication capabilities for medium and large composite aerostructures. 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. Comtek Advanced Structures Ltd., at our Burlington location also offers aircraft structural component repair services for commercial aircraft.
Avcorp Industries Inc. is a Federally incorporated reporting 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 JSF Program is forecasting the additional production of over 300 F-35 CV aircraft over the next 20-25 years.
(signed)
PETER GEORGE
CHIEF EXECUTIVE OFFICER, AVCORP GROUP
Forward-Looking Statements
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) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (b) the occurrence of work stoppages and strikes at key facilities of the Corporation or the Corporation's customers or suppliers; (c) government funding and program approvals affecting products being developed or sold under government programs; (d) cost and delivery performance under various program and development contracts; (e) the adequacy of cost estimates for various customer care programs including servicing warranties; (f) the ability to control costs and successful implementation of various cost reduction programs; (g) the timing of certifications of new aircraft products; (h) the occurrence of downturns in customer markets to which the Corporation products are sold or supplied or where the Corporation offers financing; (i) changes in aircraft delivery schedules or cancellation of orders; (j) the Corporation's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (k) the availability and cost of insurance; (l) the Corporation's ability to maintain portfolio credit quality; (m) the Corporation's access to debt financing at competitive rates; (n) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies; and (o) integration of newly acquired operations and associated expenses may adversely affect profitability.
SOURCE Avcorp Industries Inc.