Avcorp Industries Inc.

British Columbia – Delta – Delta

Corporation

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Avcorp designs and builds major airframe structures for some of the world€™s leading aircraft companies, including Boeing, Bombardier, and Cessna. With more than 50 years of experience, 507 skilled employees and 354,000 square feet of facilities, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light weight, strong, reliable structures. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX:AVP).
Products range from simple aluminum brackets, high-strength interior panels and fuel tanks to structural wing components as well as fully-integrated vertical and horizontal stabilizers. We are proud to supply: - Boeing 737NG wheel-well fairings,
- Bombardier CL605 and CL850 horizontal stabilizers,
- Cessna Citation CJ3 centre wing box and vertical stabilizers,
- Cessna Sovereign wing spar assemblies and empennage,
- Goodrich packboard shell and blow-out panel for the Airbus A380,
- Bombardier Q Series, CRJ700/900 and CL605 Floor panels,
- Fully-certified OEM and aftermarket floor panels for CRJ series, DHC-8 Q series, ATR 42/72, ERJ 135/145 Dornier 328 - Saab 340 aircraft.
Capabilities include: - Engineering design, certification
- Airworthiness certification
- Major structural assembly
- Metal bond
- Sheet metal details and subassemblies
- 3-4-5-Axis Machining
- Hybrid fibre-metal laminates
- Resin infusion (VARTM)
- Tool design/build
Avcorp's design, manufacturing, project, and quality engineers apply lean manufacturing principles to produce high quality, cost efficient custom products. SmarTeam software is the technology that enables communication, management and automated workflow of all these critical behind-the-scenes elements, and we use Baan for enterprise resource planning.
Avcorp is providing $100,000 over the next 5 years (2007 to 2012) for sponsorship of an Avcorp Structures Laboratory at the new British Columbia Institute of Technology (BCIT) Aerospace Technology Campus located near the Vancouver International Airport. This new facility for aerospace structures training will provide graduates for highly-skilled, high-paying jobs for British Columbians and ensure that Avcorp€™s growing needs for qualified workers are met.
BCIT and Avcorp have also signed a Memorandum of Understanding to establish a state-of-the-art composite materials research, development and testing facility located at the BCIT aerospace campus. Through collaborative projects conducted in the facility, Avcorp will stay on the leading edge of aerospace materials technology and BCIT will establish new educational programs and research capabilities in the field of aerospace materials. The research facility will occupy approximately 25,000 square feet at the new BCIT Aerospace Technology Campus in Richmond, BC, where research, development, prototyping, limited production and testing work will be conducted on composite materials.
Targets have been set to aggressively grow the current business.
A strategy in the Company's Business Plan is in place for
acquisitions to obtain required capabilities and sustain growth
by diversification within and outside the aerospace industry.
Country of Ownership: Canada
Year Established: 1986
Exporting: Yes
Quality Certification: NADCAP
ISO 9001
Primary Industry (NAICS): 336410 - Aerospace Product and Parts Manufacturing
Alternate Industries (NAICS): 332710 - Machine Shops
541330 - Engineering Services
Primary Business Activity: Manufacturer / Processor / Producer
Total Sales ($CDN): $100,000 to $199,999
Export Sales ($CDN): $100,000 to $199,999
Number of Employees: 850

Services:
Engineering, 3-4-5-axis machining, Design, certification and manufacture, As9100/iso9001, Nadcap special processes, Transport canada, Easa.145.7079 repair, Customer proprietary processes, Export control compliance

Products:
Major structural assembly, Sheet metal details - sub-assemblies, Metal bond, Resin infusion (vartm), Maintenance/repair composite products, Tool design/build, Hybrid fibre-metal laminates, Airworthiness certification

Technology:
The equipment, technologies, systems and processes€”consisting of a BaaN enterprise resource planning (ERP) system, computer-aided design systems, approved quality assurance procedures, modern machining centres, presses, routers, anthropomorphic robots, assembly jigs and process equipment, chemical processing, painting and metal bonding facilities€”are sufficient to meet market demands for conventional aircraft parts and structures. The Company reviews emerging technologies and periodically considers its opportunities for research and development programs in such fields as advanced composites, high-speed machining and further automation of assembly. The Company has an established strategy of investing in its core competencies while outsourcing its remaining business requirements. This is reflected in the continued research in automated assembly, along with a recent investment in high-speed, 5-axis machining.
Avcorp researches and develops new processes and new technologies. At our subsidiary Comtek, a resin infusion technology (VARTM) called Smart Flow and Smart Cure is a new technology that has been certified on the Airbus A380 now entering production. Avcorp in Delta has developed and implemented a pulse-line assembly system, a visual production system that pulses (moves) at a fixed rate based on customer deliverable requirements, that has significantly reduced assembly labour hours.

Sector:
Plant Information: Total Plant Size (Areas sq ft): 385,000 sq ft
Distribution of Employees
The Company is making significant efforts to ensure that it has the appropriate human resources at all levels of the organization. The Board of Directors has considerable investment and financial expertise. The management team is experienced in the industry and in all aspects of operations. All employees have appropriate qualifications and experience to perform their duties and the Company provides ongoing training and work opportunities for employee growth.
It is envisaged that additional employees will continue to be hired to satisfy production requirements. The Company€™s compensation system consists of wages and salaries, benefit programs, and stock options (note 9). The Company continually reviews its compensation practices to ensure it can attract and retain employees with the necessary skills.
The Company€™s collective agreement with its labour force expired on September 30, 2009. There exists bridging language that extends the current contract until a new agreement is ratified. The Company is re-negotiating a new agreement and expects those discussions to complete within an acceptable time frame.
Key / Major Clients: Boeing - Bombardier - Cessna - Hexcel - Goodrich - Primus - Aviation Partners Boeing - Catic - BAE Systems - Lockheed Martin - FACC - HondaJet - Hawker de Havilland - BHA Aero - Magellan - Asia Composites Malaysia
Testimonial: €œWe chose Avcorp for their expertise, capability, management, quality and best overall value for Cessna. We consider Avcorp to be more than a supplier€”they are a partner.€?
Ron Alberti, Senior Vice President, Integrated Supply Chain, Cessna Aircraft Company
"Boeing has a long-established relationship with
Canadian companies. Our supplier base in Canada
has always proved to be reliable, on time and
excellent quality. We want to make Avcorp a
bigger part of that relationship."
Boeing Executive Vice President Fred Mitchell,
"Avcorp is a D1-9000A supplier that is very
quality conscious. In the four years that Boeing
has been receiving shipments from them, only one
part has been returned due to a rejection in our
manufacturing area. It is rare to find a supplier
with this type of commitment to quality
workmanship. It is team members like Avcorp that
enable us to provide quality product to our
customer."
Boeing Senior Subcontract Administrator Kathy
Lyons, Material Matters
"We are constantly on the lookout for suppliers
who can provide quality products at competitive
prices, and

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Profile ID: LFCA-COD-O-32744

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