Avcorp to produce composite components for use with aircraft wings
VANCOUVER, Nov. 10, 2016 /CNW/ - Avcorp Industries Inc. (TSX:
AVP) (the "Company", "Avcorp" or the "Avcorp Group") is pleased to announce that it has been awarded a long-term production
contract with the Aerospace Company of Fuji Heavy Industries Ltd. ("FHI"), a tier-one supplier to major original equipment
manufacturers ("OEM") of commercial and defence aircraft around the world.
Avcorp will produce complex composite structural components for FHI that will be assembled for the Boeing 787 center wing
box. Avcorp, which will produce the components from its Composite Fabrication facility located in Gardena, California, expects that production volumes will grow by as much as 50% over historical supply
rates.
"The contract award with FHI is significant on a number of levels," said Mr. Peter George, CEO of
Avcorp Industries. "First, it transitions our role with FHI from being a supplier with short-term purchase orders to one with
a long-term contract for complex composite components for the Boeing 787 platform. Second, it extends our reach within the
Boeing supply chain by complementing our long-standing relationship with the OEM. Both developments are due to our growing
reputation as a quality supplier and to the recent investments we have made towards developing expertise in the manufacture of
complex composite materials."
As a result of the contract award, Avcorp's order backlog is currently estimated at $901
million. The new total reflects the cumulative net effect of recent production deliveries as well as the addition of
production contract with FHI.
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, FHI and Lockheed Martin. The Avcorp Group has more than 50 years of experience, over 750 skilled
employees and 636,000 square feet of facilities. Avcorp Structures & Integration located in Delta British Columbia, Canada is dedicated to metallic and composite aerostructures assembly and integration;
Avcorp Engineered Composites located in Burlington Ontario, Canada is dedicated to design and
manufacture of composite aerostructures, and Avcorp Composite Fabrication located in Gardena
California, USA has advanced composite aerostructures fabrication capabilities for 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 Ontario, Canada location also provides operators and MRO's
aircraft structural component repair services for commercial aircraft.
Avcorp Composite Fabrication Inc. is wholly owned by Avcorp US Holdings Inc. Both companies are incorporated in The
State of Delaware, USA, and are wholly owned subsidiaries of Avcorp Industries Inc.
Comtek Advanced Structures Ltd., incorporated in the Province of Ontario, Canada, is a wholly
owned subsidiary of Avcorp Industries Inc.
Avcorp Industries Inc. is a federally incorporated reporting company in Canada and traded on
the Toronto Stock Exchange (TSX:AVP).
(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.
