Meloche Group Inc., a major Canadian supplier of machined and sub-assembly components for the aerospace and defence industry, has signed a 10-year agreement potentially worth $30 million U.S. with Pratt & Whitney, a United Technologies Corp. company (NYSE: UTX). Under this agreement, Meloche Group will provide oil nozzles and pump plates for Pratt & Whitney's next-generation PurePower® PW1000G engine family powering the Bombardier CSeries, Airbus A320neo and Mitsubishi Regional Jet (MRJ) aircraft.
"As a long-time supplier to Pratt & Whitney, we are delighted and honoured to have been selected to provide high-quality parts for this major engine program," said Hugue Meloche, president and chief executive officer of Meloche Group. "For many years, we have demonstrated our ability to meet Pratt & Whitney's high quality, cost and delivery standards and are on our way to achieving Supplier Gold certification with the company. We are looking forward to building on our strong partnership through this promising engine program."
"Meloche Group has repeatedly demonstrated they can meet our delivery and performance requirements. With a steep production ramp in front of us, we are aggressively working with Meloche Group, as well as our other suppliers to ensure they are on the path to achieving Supplier Gold," said Sergio Loureiro, vice president, Global Supply Chain, Pratt & Whitney. "Our Supplier Gold program helps suppliers by improving productivity, on-time delivery and quality across their operations. Gold Suppliers will be the suppliers of choice for future programs, not only at Pratt & Whitney, but across United Technologies."
Under the agreement, Meloche Group will supply several types of oil nozzles and pump plates for the PW1000G engine program, with shipments anticipated to begin in about six months. The parts, to be used in the PW1500G engine for the Bombardier CSeries, the PW1100G-JM engine for the A320neo and the PW1200G engine for the MRJ, will be manufactured at two of the company's four plants, located in Salaberry-de-Valleyfield and Bromont, Quebec.
The agreement also includes United Technologies' "One Company" terms and conditions, which provides for a common contracting approach between UTC and its suppliers. This allows UTC thereby facilitating future collaboration between such suppliers and UTC aerospace businesses.
Mr. Meloche noted that in recent years Meloche Group has invested extensively in automation and advanced machining technologies, as well as in Lean manufacturing processes, to ensure optimal efficiencies and quality at both facilities. "Through our vertical integration machining strategy, Nadcap (National Aerospace and Defense Contractors Accreditation Program) accredited special processes and assembly expertise, we are able to provide world class performance in terms of quality, timely delivery, and manufacturing deadlines," said Mr. Meloche.
Meloche Group performs many complex machining procedures internally, leverages its dedicated manufacturing cells, and uses standard work and tooling to reduce start-up and set-up times. "This approach gives us full oversight over every step of the manufacturing process, from quality control to non-destructive tests," said Mr. Marc Bigras, vice president and chief operating officer of Meloche Group. "We also have a robust quality system in place with our 150 employees involved at all levels through Kaizen and other methodologies. In addition, we intend to invest several million dollars over the next few years to support this important contract and create approximately 20 jobs."
Source: Pratt & Whitney, A United Technologies Company (NYSE:UTX)
Date: Jun 15, 2015