EDAC Technologies Corporation, a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, signed long-term agreements with two leading aircraft engine manufacturers. The Company reported that it has entered into a five-year agreement with a major European-based aircraft engine manufacturer to produce rotating engine components to be used on commercial airliner platforms. Based on projected volumes, the agreement is valued at approximately $22 million over five years.
Separately, EDAC has entered into a five-year agreement with a major U.S.-based aircraft engine maker to provide several components in support of the engine program for the F-35 Joint Strike Fighter (JSF). Under this agreement, EDAC also will produce components for several of the manufacturer’s mature engine programs. Based on projected volumes, this agreement is valued at approximately $28 million over five years.
The addition of the two contracts has increased EDAC’s backlog to a record level of approximately $217 million at September 6, 2011, up from approximately $168 million at the end of the 2011 second quarter. The Company expects to start ramping up production for these two contracts at the end of this year and throughout the first two quarters of 2012.
