CPI Aerostructures, Inc. ("CPI Aero®") (NYSE MKT: CVU) today announced that it has been awarded a multi-year contract by Lockheed Martin Company (NYSE: LMT) to manufacture lock assemblies for the F-35A Conventional Takeoff and Landing ('CTOL') variant aircraft.
Under this new contract with Lockheed Martin's Aeronautics division based in Fort Worth, TX, CPI Aero will provide four lock assemblies for the arresting gear door on 289 F-35A CTOL aircraft, with deliveries beginning in 2017. The term of the contract is for a period of three years, with a single option for an additional three-year period, at which time CPI Aero would manufacture lock assemblies for an additional 459 F-35A CTOL aircraft. The Company estimates the total value of the contract, including the option, to be approximately $10.6 million.
The F-35 Lightning II is a family of single-seat, single-engine, all-weather stealth multirole fighters designed to perform ground attack, aerial reconnaissance, and air defense missions. The F-35 Lightning II aircraft has three main models; the F-35B Short Takeoff/Vertical Landing Variant, the F-35C Carrier Variant, and the F-35A CTOL variant, designed to operate from conventional runways. The F-35A CTOL will be the most prevalent variant of the aircraft. The US Department of Defense plans to acquire more than 1,700 F-35A's by 2034 and ten other countries also have plans to acquire the F-35A.
Douglas McCrosson, President and CEO of CPI Aero, stated, "This is an important win for CPI as it adds a new aircraft platform, a new customer, and bolsters our reputation as a leading supplier of military aircraft structure. The F-35A aircraft will be a vital system for global security for decades to come and we are proud to have earned the opportunity to support this program. We are also excited to add Lockheed Martin's Aeronautics division as a new customer for CPI Aero and we look forward to growing this relationship in the future."
Source: CPI Aerostructures, Inc.
Date: Jul 1, 2015