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 longstanding
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.