A Vancouver-based company delivered its first components Monday (July 13) to Lockheed Martin (NYSE: LMT ) for the controversial F-35 fighter jet.
IBC Advanced Alloys Corp.’s (TSX-V:IB) $2-million contract with the U.S. defence firm called for it to produce Beralcast azimuth gimbal housing components used for the fighter jet’s targeting system.
While the company is headquartered in Vancouver, the parts were manufactured at IBC’s production facility in Wilmington, Mass.
Canada was included in an 11-country consortium that ordered 3,100 of the F-35s but Ottawa has yet to commit to buying any aircraft.
The federal government originally estimated it would cost $9 billion to purchase 65 jets but it put the order on hold in 2012 when the auditor general pegged the actual costs at $25 billion.
The government agreements reached among the 11-country consortium called for contracts like IBC’s to go to firms based in other consortium nations.
Without a commitment from the federal government, Canadian firms stand to lose out on further contracts.
Other local contractors include Delta-based Avcorp Industries (TSX:AVP) and Asco Aerospace Canada, which have $50-million and $25-million contracts, respectively, to supply parts for the fighter jets.
Larry Glenesk, Avcorp’s vice-president of business development, told Business in Vancouver last year his company’s initial $50-million contract could be worth more than $500 million if more contracts are secured.
