Air Industries Group Secures $27 M Multi-Year Commercial Aerospace Contract
Air Industries Group (NYSE MKT: AIRI) ("Air Industries" or "the Company") announced today that its Air Industries Machining Corp. subsidiary has been awarded a multi-year contract by a leading aerostructures manufacturer to provide nacelle thrust struts. The contract is valued at $27 million with deliveries over six years. Deliveries are to begin in the first half of 2014. These components will be used in a new geared turbofan jet engine manufactured by one of the world's leading providers of aircraft engines. This engine is expected to be used on several new commercial jetliners.
Mr. Peter Rettaliata, Chief Executive Officer of Air Industries, commented: "We are very proud that one of the world's leading manufacturers has selected Air Industries to provide critical components for this new geared turbofan jet engine. We anticipate additional contracts from this same customer to be awarded in the near future. As this engine is placed into service on additional commercial airliners, we anticipate additional follow-on contract awards. In response to the reductions in defense budgets commonly referred to as Sequestration, Air Industries has increased its marketing efforts in the commercial aerospace segment. This new contract, supporting a new commercial aircraft engine, is the first result of these efforts.
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"We have been pursuing an Aerospace Consolidation Strategy aimed at grouping small Aerospace Companies to share resources, create Centers of Excellence, and enhance technical capabilities, providing a competitive advantage for the growing Aerospace Industry.
"This contract proposal was successful in part because of the technical expertise that Air Industries gained from the acquisition of Nassau Tool Works. This contact strengthens our presence with an existing customer and expands our relationship to a new to us business unit of that customer."
Source : Air Industries Group - view original press release