CPI Aero Awarded Long-Term Agreement by Sikorsky Aircraft Corp. for the Manufacture of UH-60 BLACK HAWK Fuel Panel Assemblies
Agreement valued up to $47 million for a period of five years
EDGEWOOD, N.Y.--(BUSINESS WIRE)-- CPI Aerostructures, Inc. (CPI Aero®) (NYSE MKT: CVU) announced today that it has been selected by Sikorsky Aircraft Corp. (Sikorsky) to manufacture fuel panel assemblies for the H-60 BLACK HAWK helicopter. Sikorsky Aircraft Corp. is a subsidiary of United Technologies Corp. (NYSE: UTX). This long-term agreement is valued at approximately $47 million for a period of five years.
Since 2010, Sikorsky has contracted with CPI Aero for the assembly labor of the BLACK HAWK fuel panels using components supplied by Sikorsky. To-date, CPI Aero has delivered more than 350 fuel panels to support the BLACK HAWK production line. Under the terms of the new agreement, CPI Aero will perform all manufacturing tasks for these assemblies, including purchasing all detail parts and components and managing the supply chain. CPI Aero will continue to manufacture fuel panels on an outsource basis as this new agreement transitions into full production during the third quarter of 2013.
Including this new order, total new contract awards from all customers for 2013 is approximately $68 million, as compared to approximately $45 million in new contract awards for the same period in 2012.
More than 3,000 BLACK HAWK helicopters are in use today, operating in 29 countries. Designed to stringent U.S. Military standards, the BLACK HAWK helicopter has become the leader in multi-mission-type aircraft. Among the mission configurations it serves are troop transport, medical evacuation, electronic warfare, attack, assault support and special operations.
About Sikorsky Aircraft
Sikorsky Aircraft Corp., based in Stratford, Conn., is a world leader in helicopter design, manufacture and service. United Technologies Corp., based in Hartford, Conn., provides a broad range of high technology products and support services to the aerospace and building systems industries.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural aircraft parts for fixed wing aircraft and helicopters in both the commercial and defense markets. Within the global aerostructure supply chain, CPI Aero is either a Tier 1 supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1 manufacturers. CPI also is a prime contractor to the U.S. Department of Defense, primarily the Air Force. In conjunction with its assembly operations, CPI Aero provides engineering, program management, supply chain management, and MRO services. Among the key programs that CPI Aero supplies are the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack jet, the Gulfstream G650, the UH-60 BLACK HAWK helicopter, the S-92® helicopter, the MH-60S mine countermeasure helicopter, AH-1Z ZULU attack helicopter, the HondaJet-Advanced Light Jet, the MH-53 and CH-53 variant helicopters, the C-5A Galaxy cargo jet, the E-3 Sentry AWACS jet, the Embraer Phenom 300 light business jet and the New Cessna Citation X. CPI Aero is included in the Russell MicroCap® Index.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI Aeros SEC (SCUR) reports, including CPI Aeros Form 10-K for the year ended December 31, 2012 and Form 10-Q for the quarter ended March 31, 2013.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
Source: CPI Aerostructures, Inc.Copyright Business Wire 2013