Bell Helicopter, a Textron Inc. (NYSE: TXT) company, continues to ramp up its production of H-1 helicopters after receiving a $546 million contract in June for the manufacture and delivery of Lot 7 of the U.S. Marine Corps H-1 Upgrade program.

The contract includes 18 UH-1Y utility helicopters and 11 AH-1Z attack helicopters. Final assembly of the helicopters will take place at Bell's Military Aircraft Assembly and Delivery Center in Amarillo, Texas, with deliveries of Lot 7 aircraft to begin in 2011.

In October 2009, Bell began construction of a $31 million, 137,000-square-foot H-1 flight operations hangar and 500,000 square feet of additional ramp space at its Amarillo facility. Expansion is expected to be complete in October 2010.

Bell delivered one AH-1Z and eight UH-1Ys in 2009 and is under contract to deliver six AH-1Zs and 13 UH-1Ys in 2010. The company expects to ramp up to delivering 26 aircraft per year in 2012.

The UH-1Y is currently deployed to Afghanistan, flying with Marine Light Attack Helicopter Squadron 369 (HMLA-369), the "Gunfighters."