QUICKSTEP HOLDINGS LIMITED, an Australian-based company which is at the forefront of advanced materials manufacturing and technology transfer for the global aerospace and defence industries.
The use of advanced composites is rapidly growing with carbon material usage planned to increase at an average rate of 20% per annum for the next 10 years, underwritten by the emergence of high-use carbon fibre commercial aircraft such as the Boeing 787 and Airbus A350. Light weighting of vehicles is the prime driver with commercial aircraft and military equipment leading the charge.
Quickstep has significant capabilities and expertise in the production of aerospace-grade composite components using both conventional autoclave-based manufacturing and leading edge out-of-autoclave production technologies, including its proprietary Quickstep Process.
The Company has recently taken another key step towards securing manufacturing contracts under the international Joint Strike Fighter (JSF) program, announcing that it has signed a Manufacturing License Agreement (MLA) with global security company Northrop Grumman Corporation, a subcontractor to Lockheed Martin Corporation in the design and manufacture of the centre fuselage for the F-35 Lightning II aircraft.
Quickstep signed a Memorandum of Understanding (MOU) with Lockheed Martin and Northrop Grumman in November 2009 to finalise a Long Term Agreement (LTA) for the manufacture of up to $700 million worth of contracts for JSF.
The F-35 Lightning II is a fifth generation fighter, combining advanced stealth with fighter speed and agility, fully fused sensor information, network-enabled operations, and lower operational and support costs.
The signing of the MLA provides Northrop Grumman with export approval from the US Department of State to begin transferring to Quickstep technical information necessary for the manufacture of the parts to be produced under the MOU.
Under the terms of the MOU, Quickstep would supply 21 different F-35 components. The parts would then be exported to the United States for incorporation into F-35s globally.
The manufacturing program is planned to last between 20 and 30 years and generate annual turnover of up to $50 million by 2015.
Mr. Philippe Odouard, CEO of Quickstep Holdings Limited said the MLA represents an important milestone for the Company, The signing of this Manufacturing Licensing Agreement will establish an essential transfer of data between Quickstep and Northrop Grumman to enable Quickstep to complete the final preparations for the planned signing of the Long Term Agreement for F-35 manufacturing in the second quarter of 2010. This is a key step for Quickstep along the road to aerospace manufacturing, Mr. Odouard told the Australian Investor, It is a complement to the Memorandum of Understanding that we signed in November 2009.
Preparations for the start of manufacturing are progressing in line with the timetable agreed to with Northrop Grumman, with Quickstep proceeding well with the employment of new key staff members and the acquisition of necessary equipment to be able to commence production as planned in 2012. Preparation for parts and process qualification prior to production is also proceeding on schedule.
We are dedicated to preparing for production to commence in 2012. In October 2009 we devised a well-established program in order to ensure Quickstep will be on track. We have already started recruiting experts and have raised $24 million to invest in equipment, which has been extremely successful. The next big milestone will be signing a Long Term Agreement. We are working on this presently, Mr. Odouard confirmed.
He highlighted Quicksteps key strengths which assisted in achieving the Manufacturing Licensing Agreement, We have the capacity and willingness to get involved in this sort of aerospace technology. We specialise in the most advanced parts that can be manufactured.
Looking ahead, Mr. Odouard concluded, Our priority is to continue preparation to start manufacturing in 2012. We will also be looking at more contract opportunities in other areas.
QHL Price at posting:
37.0¢ Sentiment: Buy Disclosure: Held
