EDAC Technologies Corp. reported three new contracts totaling $58 million for Tier 1 aerospace and industrial manufacturers. The Connecticut company, which designs and produces precision components for aerospace and industrial applications, said the long-term agreements would extend its order backlog to approximately $310 million.
"With these LTAs, our backlog has reached a milestone, breaking through the $300 million level for the first time, noted EDAC president and CEO Dominick A. Pagano. “Winning these contracts reflects our focus in recent years on expanding our precision manufacturing platform, developing the capacity to produce a wider range of parts, and diversifying our relationships with Prime and Tier 1 customers.”
EDAC said it landed a five-year agreement with Volvo Aero to produce rotating disks, compressor hubs and other components for an engine program supplying Boeing aerial refueling tanker aircraft and wide-body commercial aircraft. The same contract will supply parts for an engine used in European fighter jets, too.
The agreement with Volvo Aero runs through 2017 and is estimated $29 million, based on projected volumes.
The second new contract is a four-year agreement with a division of GE Aviation to manufacture booster cases for two engines used on commercial aircraft, including Boeing 747 and Airbus A330. Running through 2015, and based on its projected volumes, this contract is estimated at $13 million.
Last, EDAC said that Rolls-Royce Canada renewed for five more years a contract for supply of rotating components for ground-based turbines used in power generation. This contract will run through 2016, and based on the expected volumes it is estimated at $16 million.
"We have demonstrated that EDAC is well-positioned to benefit from the strong demand in the aerospace sector, while also applying our skills to opportunities in industrial markets such as power generation," said Pagano.