Quickstep Holdings (ASX:QHL), a manufacturer of high-grade carbon-fibre components, should trade higher after receiving a new purchase order for 19 sets of C-130J wing flaps from global security and aerospace company, Lockheed Martin (NYSE:LMT).
The U.S. $11.2 million purchase order comprises part of Quickstep's overarching U.S. $75 million memorandum of agreement to manufacture wing flaps for the Lockheed Martin C-130J Super Hercules aircraft.
Deliveries under this purchase order are expected to begin in mid-2015, and including this latest order, Quickstep has received firm production orders for 55 wing flap sets.
Seven complete wing flap sets have been delivered by Quickstep to Lockheed Martin since the initial set of flaps
was shipped in February 2014, and production is continuing at two sets per month, expected to accelerate to three sets per month during the second half of 2014.
The continuing contract flow attests to the company's positive working relationship with Lockheed Martin and demonstrates strong progress on this important aerospace contract.
Lockheed Martin awarded Quickstep the tender in March 2012. Over the life of the MOA, Quickstep will supply 120 sets of carbon-fibre flaps through to 2018.
Every set provided by Quickstep has four wing flaps, each including more than 200 individual parts such as carbon ribs, spars and skins, all manufactured at its Bankstown Airport aerospace facility.
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