Israel Aerospace Industries – LAHAV Division (“IAI”) and Héroux-Devtek sign 10-year contract
By CNW Telbec
May 15, 2008, Arlington, TX - Héroux-Devtek Inc., a leading Canadian manufacturer of aerospace and industrial products, today announced that the LAHAV Division of Israel Aerospace Industries (IAI-LAHAV) has awarded Progressive Incorporated ("Progressive"), a business unit of Héroux-Devtek's Aerostructure Division, a ten year contract to manufacture structural detail components being used in IAI's production of F-15 and F-16 structural assemblies.
By CNW Telbec
Under the terms of the agreement, Progressive, based in Arlington, Texas, will fabricate, assemble and deliver over 50 aluminum and titanium structural detail components such as spars, ribs, and fitting assemblies. This contract is effective immediately and continues through December 2018. The first purchase order was released at a value of approximately $1 million for the remainder of calendar year 2008. Under the terms of the agreement, future purchase orders will be released on an annual basis, with the total contract value possibly exceeding $10 to $12 million.
"We are excited that Israel Aerospace Industries has put their confidencein Progressive for this important contract," said Rick Rosenjack, Vice-President and General Manager of Héroux-Devtek's Aerostructure Division.
"With potential for additional business from IAI, we look forward to delivering to our commitment and earning the right to grow with this major customer. This further illustrates Héroux-Devtek's growing global reputation and underlines the confidence manufacturers place with us for such strategic programs."
"Progressive is a proven supplier for the military aircraft platforms," said Shimon Etedgi, Director of Procurement for IAI's Lahav Division. "Their experience in manufacturing critical aircraft components was a key reason for their selection."
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) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 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 Toronto, Ontario; Arlington, Texas and Cincinnati, Ohio.
About IAI's LAHAV Division
IAI-LAHAV is a world recognized Build-to-Print (BTP)/Build-to-Spec (BTS) production house, producing Wing boxes, Vertical Stabilizers, Conformal Fuel Tanks (CFT), Cockpit Side Panels (CSP) and Access Doors, mainly for western platforms such as F16 and F15 Aircrafts. In addition, IAI-LAHAV specializes in upgrading a wide range of Eastern and Western military aircraft and helicopters. These upgrades provide unique solutions for enhanced capabilities
and mission performance.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.