Wings Magazine

Avcorp signs agreement with BAE Systems

July 21, 2010, Vancouver - Avcorp Industries Inc today announced the signing of an agreement between the company and BAE Systems Operations Ltd. for the production of the F35 CV-OBW commencing in 2010 and with potential deliveries through 2023.

July 21, 2010  By CNW

The Carrier Variant or F35C is currently only required by the US Navy. The Memorandum of Agreement and associated Terms and Conditions were signed today at the Canadian Pavilion at the Farnborough International Air Show. In attendance were the Honourable Tony Clement, Minister of Industry and the Honourable Lynne Yelich, Minister of State – Western Economic Diversification, for the Government of Canada.

Avcorp is establishing a production capability in 2010 and assembly will start by the end of the year with initial deliveries by mid-2011. Most of this work will be completed in a dedicated facility in Delta BC with use of an extensive US and Canadian supply network.

"This contract is a significant step in achieving the strategic diversification of the Avcorp portfolio of business," said Mark van Rooij, CEO of Avcorp. "It is the culmination of a lot of hard work by an outstanding team of Avcorp employees. The F35 work represents a step up in the capabilities at Avcorp and establishes the company as one of very few capable of producing aerostructure assemblies for the latest 5th generation fighter aircraft."

"This is the second Industrial Participation contract established in Canada by BAE Systems, with Avcorp being the planned single source supplier for the F35 Outboard Wings. To date Avcorp have demonstrated a very high level of proactive commitment to the Program and we are confident that the relationship will continue to develop with Avcorp enabling BAE Systems to deliver on its commitments to on time, quality OBW's that achieve the affordability targets for the F35 Lightening Program" said C. Addison BAE Systems F35 Project Director.


Avcorp has succeeded in reaching this point on the program by engaging early with Government of Canada initiatives (led by IndustryCanada) and by investing in the upgrading of people, skills and facilities. Throughout this process BAE Systems has provided leadership and support for the company's efforts. This initial step may result in the delivery of up to 340 shipsets of the CV-OBW by Avcorp, representing in excess of US$500 million in revenues over 10 to 15 years of production. Approximately 75 direct and indirect jobs will be created by this contract at Avcorp.


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