Lockheed Martin Awards New Contract to IBC Advanced Alloys with a 16% Increase in Beralcast® Components for the F-35 Lightning II Aircraft
IBC’s Innovative Precision-Cast Process can Produce Beryllium-Aluminum Components for the Jet Fighter Faster and More Efficiently than Conventional Technologies
FRANKLIN, IN -- (February 23, 2017) -- 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 (NYSE: LMT) has awarded IBC a new contract to produce a crucial advanced beryllium-aluminum alloy component for the F-35 Lightning II Electro-Optical Targeting System (EOTS).
The purchase order from Lockheed Martin is for azimuth gimbal housing units for the EOTS system, which IBC has manufactured for Lockheed since 2015 using IBC’s high performance Beralcast® beryllium-aluminum precision cast alloy. The contract was awarded as part of the U.S. Defense Department’s Low Rate of Initial Production (“LRIP”) Lot 11 purchase of the fighter jet.
The new contract represents a 16% increase over the number of EOTS components that IBC manufactured for Lockheed Martin in the previous contract. The previous contract combined orders for both LRIPs 9 and 10 and represented a minimum contract value of more than USD $2 million. The total value of the new contract is approximately USD $2.6 million.
EOTS is Lockheed Martin’s affordable, high-performance, lightweight, multi-function system that provides precision air-to-air and air-to-surface targeting capability. The low-drag, stealthy EOTS is integrated into the F-35 Lightning II's fuselage with a durable sapphire window and is linked to the aircraft's integrated central computer through a high-speed fiber-optic interface.
IBC expects to deliver near-net-shape castings of the EOTS azimuth gimbal housing directly to Lockheed Martin, which will then separately contract for finishing and final machining. Lockheed Martin has agreed to a long lead time procurement provision for key materials to ensure continued production.
Beryllium-aluminum alloys allow the F-35’s 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.
"We are pleased and proud to have been awarded a third purchase order from Lockheed Martin for the EOTS azimuth gimbal housing on the F-35 Lightning II, and at a level that represents a significant increase over the previous two LRIP orders combined,” said Major General Duncan Heinz (USMC, ret.), President, CEO, and Director of IBC. “Our proprietary Beralcast® beryllium-aluminum casting alloys deliver the exceptional performance demanded by the F-35 platform and help to reduce costs for this system over traditional technologies. We look forward to serving Lockheed Martin and other defense and commercial equipment manufacturers with custom manufactured Beralcast® components.”
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.
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On Behalf of the Board of Directors:
Duncan Heinz, President, CEO and Director
@IBCAdvanced $IB $IAALF
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".
This news release was prepared by management of IBC, which takes full responsibility for its contents. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. 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.