LONGUEUIL, QC, March 28 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a
leading Canadian manufacturer of aerospace and industrial products, today
announced that its Aerostructure Division has been awarded a long-term
contract from Lockheed Martin Aeronautics Company (LM Aero) to manufacture
structural components for the F-35 Lightning II Joint Strike Fighter (JSF)
during the Low Rate Initial Production (LRIP) phase of the program. The JSF
program is considered to be the largest ongoing military program over the next
The agreement, signed between LM Aero and Progressive Incorporated,
Héroux Devtek's business unit in Arlington, Texas, covers wingbox parts and
inner wing bulkheads for all three F-35 variants - STOVL (Short Take-Off and
Vertical Landing), CTOL (Conventional Take-Off and Landing), and CV (Carrier
Version). Under the first phase of the agreement, Progressive will produce
components for the first five years of the program (LRIP lots 1 through 5),
with deliveries gradually ramping up over the five year period. Progressive's
total revenues over the first five years of the agreement could be up to
CDN$135 million. As previously announced, Progressive began delivery of these
components during the third quarter of fiscal 2007 for the Systems
Demonstration and Development (SDD) phase of the program.
The second phase of the agreement, to last until 2028, will provide
Progressive with continued business beyond the first five years of the program
at a share of approximately 50% of the annual production rate. Both phases of
the agreement are contingent upon customary performance clauses, and are
subject to government funding for the F-35 program.
"This long-term contract is a clear testament to the strong relationship
we have with Lockheed Martin Aeronautics and of their confidence in
Héroux-Devtek's ability to deliver on this crucial assignment," stated Gilles
Labbé, CEO of Héroux-Devtek. "We look forward to working with them as part of
their dynamic team for many years to come."
"Our success in winning this significant contract is due to the
dedication and technical competence of the combined forces of LM Aero and
Progressive's employees. This teamwork, so clearly demonstrated in the
development stage by all employees involved, provides an excellent foundation
for consistent quality service to Lockheed Martin," stated Rick Rosenjack,
Vice-President and General Manager of Héroux-Devtek's Aerostructure Division.
"I have no doubt that this team will continue to produce exceptional results
in the production phase of the program."
In preparation for this added business, Progressive has already broken
ground for a new, state-of-the-art manufacturing facility in Arlington, Texas.
The first phase of the program represents a CDN$20 million investment in plant
and equipment and will span 72,000 square feet. There are already plans for an
additional 48,000 square feet as the F-35 production rate increases above the
initial capacity of 50 shipsets per year. Manufacturing operations in the new
facility will begin in the summer of 2007.
Héroux-Devtek (TSX: HRX), a Canadian company, serves two main market
segments: Aerospace and Industrial Products, specializing in the design,
development, manufacture and repair of related systems and components.
Héroux-Devtek supplies both the commercial and military sectors of the
Aerospace segment with landing gear systems (including spare parts, repair and
overhaul services), as well as airframe structural components and assemblies.
The Company also supplies the industrial segment with large components for
power generation equipment and precision components for other industrial
applications. Over 70% of the Company's sales are outside Canada, mainly in
the United States. The Company's head office is located in Longueuil, Québec,
with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and
Rivière-des-Prairies); Kitchener and Scarborough, Ontario; Arlington, Texas
and Cincinnati, Ohio. For additional information visit www.herouxdevtek.com.
About Lockheed Martin
The F-35 Joint Strike Fighter program is a United States-led
multinational effort to build an affordable, next-generation, multi-role,
supersonic fighter aircraft. Canada has been an active partner in the JSF
program, participating in both the Concept Demonstration Phase and the System
Development and Demonstration Phase, which has allowed DND and Canadian
industry to be part of a cutting-edge, international military program. The
Government of Canada has contributed US $160 million to these first two phases
and has entered into negotiations for participation in the third and final
phase. According to DND's JSF Project Office, to date, 46 Canadian companies,
universities and government facilities have won more than 140 contracts valued
at more than US $380 million.
Héroux-Devtek manufactures the nose and main landing gear for Lockheed
Martin's C-130J Super Hercules tactical transport aircraft in Longueuil,
Quebec. A total of 180 C-130Js are on order, and 131 have been delivered to
the U.S. Air Force, U.S. Marine Corps, U.S. Coast Guard, Royal Air Force,
Royal Australian Air Force, Italian Air Force and the Royal Danish Air Force.
Operators from around the world are flying the aircraft at a high tempo in
combat and humanitarian relief operations, and are all experiencing the high
reliability, range, speed and payload capabilities it was built to deliver.
Headquartered in Bethesda, Maryland, Lockheed Martin employs about
135,000 people worldwide and is principally engaged in the research, design,
development, manufacture and integration of advanced technology systems,
products and services. The corporation reported 2005 sales of $37.2 billion.
For further information:
For further information: Media Contacts: For Lockheed Martin: Keelan
Green, Thornley Fallis Communications, (613) 231-3355, ext. 260, Mobile: (613)
220-2016, email@example.com; For Héroux-Devtek: Frédéric Beausoleil,
MaisonBrison, (514) 731-0000, firstname.lastname@example.org