Press release
15/05/2008
Héroux-Devtek Inc. (TSX:HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced that the LAHAV Division of Israel Aerospace Industries (IAI-LAHAV) has awarded Progressive Incorporated ("Progressive"), a business unit of Héroux-Devtek's Aerostructure Division, a ten year contract to manufacture structural detail components being used in IAI's production of F-15 and F-16 structural assemblies.
Under the terms of the agreement, Progressive, based in Arlington, Texas, will fabricate, assemble and deliver over 50 aluminum and titanium structural detail components such as spars, ribs, and fitting assemblies. This contract is effective immediately and continues through December 2018. The first purchase order was released at a value of approximately $1 million for the remainder of calendar year 2008. Under the terms of the agreement, future purchase orders will be released on an annual basis, with the total contract value possibly exceeding $10 to $12 million.
"We are excited that Israel Aerospace Industries has put their confidence in Progressive for this important contract," said Rick Rosenjack, Vice-President and General Manager of Héroux-Devtek's Aerostructure Division. "With potential for additional business from IAI, we look forward to delivering to our commitment and earning the right to grow with this major customer. This further illustrates Héroux-Devtek's growing global reputation and underlines the confidence manufacturers place with us for such strategic programs."
"Progressive is a proven supplier for the military aircraft platforms," said Shimon Etedgi, Director of Procurement for IAI's Lahav Division. "Their experience in manufacturing critical aircraft components was a key reason for their selection."