November 10, 2016
VANCOUVER: 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.
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 800 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 aircraft operators with 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).
Sandi DiPrimo, Investor Relations Contact | 604-587-4938