FRANKLIN, Ind., May 22, 2018 (GLOBE NEWSWIRE) -- IBC Advanced Alloys Corp. (TSX-V:IB) (OTCQB:IAALF) (“IBC” or the “Company”) a leading beryllium and copper advanced alloys company, announces that Lockheed Martin (“Lockheed”) (NYSE:LMT) has awarded the Company a new three-year contract valued at a minimum of $7.8 million to manufacture production azimuth gimbal housings, a key component for the F-35 Lightning II’s Electro-Optical Targeting System (EOTS). Additional quantities on this contract are expected for spares in the last two years. The new multi-year contract is a part of Lockheed’s production ramp-up for the F-35, which continues to accelerate to full-scale production levels. More than 280 aircraft have been delivered to date, with approximately 3,000 F-35s expected to be produced over the life of the program.
This contract represents the first time that Lockheed has awarded a multi-year purchase of azimuth gimbal housings for the F-35. The purchase order, which includes a number of housings to be used for production airframes and for spares, represents a double-digit average annual increase in the production rate for IBC over the previous one-year contract with Lockheed, and a more than 40% increase in the final year of the contract as production of the F-35 ramps up.
The units will be made of IBC’s high-performance beryllium-aluminum alloy known as Beralcast®. IBC’s advanced technology gives it the ability to precision cast the beryllium alloy part in a manner that is significantly less costly for Lockheed – and for taxpayers – than legacy production techniques.
“IBC’s proprietary casting process stands alone when it comes to delivering stiff, light, and reliable parts for modern aircraft imaging systems,” said Chris Huskamp, President of the IBC Engineered Materials Division. “Our net-shape casting process represents a significant cost advantage when compared to traditional machining of consolidated powder billets. Our recent investments in new capital equipment and personnel have strategically positioned us to support the increased volumes for Lockheed with exceptional cost competitiveness.”
Major General Duncan Heinz (USMC, ret.), President and CEO of IBC, said: "IBC is pleased and proud to continue to support Lockheed Martin’s drive to deliver affordable advanced fifth generation warfighting capability to the warfighter. This multi-year award will allow for greater efficiencies, and lower costs, than single-year contracts. We certainly look forward to growing our business with Lockheed Martin as production increases for the F-35, and we look forward to expanding our business with other defense and commercial equipment manufacturers for high-performance Beralcast® components.”
The 3-year agreement encompasses Lot 12, 13, and 14 of the U.S. Defense Department’s Low Rate of Initial Production (“LRIP”) purchase schedule for the advanced fighter jet. IBC has manufactured this part for Lockheed Martin since 2015.
The EOTS system combines advanced sensor technology, a low-profile sapphire window design, and advanced algorithms to provide long-range target recognition, identification, and tracking. In the Infrared Search and Track mode, EOTS locates and tracks multiple airborne threats at extended ranges, ensuring high lethality and survivability. EOTS incorporates proven technology and advances in optics, stabilization and processing. Its modular design and ease of repair make it simple to support and ensure two-level maintenance. See more about the EOTS System here.
Beryllium-aluminum alloys allow the EOTS system to acquire targets at longer distances than would be the case with other materials. Beryllium-aluminum helps to dampen vibration and signal noise to the EOTS system, which enhances the electro-optical resolution range.
The F-35 Lightning II, a 5th generation fighter, combines advanced low observable stealth technology with fighter speed and agility, fully fused sensor information, network-enabled operations and advanced sustainment. Three distinct variants of the F-35 will replace the A-10 and F-16 for the U.S. Air Force, the F/A-18 for the U.S. Navy, the F/A-18 and AV-8B Harrier for the U.S. Marine Corps, and a variety of fighters for at least 10 other countries.
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
"Duncan Heinz”
Duncan Heinz, President, CEO and Director
Contact:
Jim Sims, Investor and Public Relations
IBC Advanced Alloys Corp.
+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
CAUTIONARY STATEMENTS
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This disclosure contains a forward-looking statement regarding the revenues associate with the Lockheed Martin contract and planned production for the F-35. Although IBC believes that the expectations reflected in this forward-looking statement are reasonable, forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statement. The forward looking statements made by the Company in this press release are based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. As a result, we cannot guarantee that any forward-looking statement will materialize and we caution you against relying on any of these forward-looking statements. IBC makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as required by applicable law. Additional information identifying risks and uncertainties is contained in IBC’s filings at www.sedar.com.