Delta-based manufacturer Avcorp Industries Inc. (TSX:AVP) has signed a memorandum of agreement to build outboard wing assemblies for the U.S. Navy’s F35 carrier variant fighter jet.
The deal was announced today at the Farnborough International Air Show in the U.K. where industry minister Tony Clement and Lynne Yelich, minister of state for Western Economic Diversification, were also in attendance.
“This contract is a significant step in achieving the strategic diversification of the Avcorp portfolio of business,” said Avcorp CEO Mark Van Rooij in a statement. “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 fifth generation fighter aircraft.”
The deal represents an agreement between Avcorp and global defense contractor BAE Systems Operations Ltd. for the production of outboard wings beginning this year.
Most of the work will be completed at a dedicated facility in Delta, Avcorp said, and deliveries could extend through 2023.
The company said this initial deal could result in the delivery of up to 340 shipsets of the outboard wings, which would represent more than US$500 million in revenue over the next 10 to 15 years.
The agreement will also create approximately 75 jobs at Avcorp.
The company could not be reached for comment by press time.