September 22, 2016
VANCOUVER: Avcorp Industries Inc. (TSX: AVP) (the “Company”, “Avcorp” or the “Avcorp
Group”) today announced that it has been awarded multiple production contracts from Boeing.
These production contracts consist of complex metal bond and multi-material structural
assemblies that complement Avcorp’s capability as a strategic integrated supplier within the
aerospace industry. The new contracts include:
- Production of Spoilers for the Boeing 737 MAX program. This will be one of the most
significant contracts in Avcorp’s order backlog. The addition of the Spoiler production will
result in considerable increases to Avcorp’s existing plant and equipment utilization for the
coming years. The 737 MAX is Boeing’s new, more fuel-efficient single-aisle airplane, with
first delivery anticipated next year.
- Production of Metal Bond Panels for the Boeing 777X. This award is the first contract for
Avcorp with Boeing’s new 777X program. The 777X will be the world’s largest and most fuelefficient
twin-engine commercial airplane, with first delivery anticipated in 2020.
- Production and supply of Doors for the Boeing Next-Generation 737 and 737 MAX. This
contract creates beneficial production synergies that complement Avcorp’s current 737 Wheel
Well Fairing high-rate production program, having daily just-in-time deliveries to 737
assembly lines.
- Avcorp previously announced a contract to produce Tanker Fairings for the KC-46 Program;
the Boeing Tanker built on a 767 platform. This assembly leverages Avcorp’s integration
capabilities utilizing composite and metallic materials.
Avcorp’s order backlog is currently estimated at $579 million, in consideration of attaining full
award values, after reduction for sales made during the first two months of the current quarter.
“These latest awards expand Avcorp’s manufacturing relationship with Boeing with a timeline that
goes well into the future,” said Peter George, Avcorp Industries Inc. CEO. “We are very proud to
support Boeing on new programs such as the 737 MAX and 777X, and look forward to continued
growth providing better solutions to all our customers.”
“We appreciate Avcorp’s continued focus on quality, reliability and affordability to support our
position in a competitive marketplace,” said John Byrne, Vice President, Boeing Commercial
Airplanes Supplier Management for Aircraft Materials & Structures. “Avcorp is a positive example
of the strong ties between Canada’s aviation industry and Boeing.”
Avcorp has been manufacturing and supplying Boeing with various aircraft components
supporting the 737, 757, 767, 777, 787, CH-47 programs for more than 20 years.