MBAerospace - Monday, September 14, 2009

MB Aerospace Ltd, one of the UK's leading aerospace companies, has announced details of a US $30 million extension to its contract with the Boeing Company in St. Louis, Missouri, USA.

The contract, which will run until 2013, will see MB Aerospace supply torpedo and deck launch systems for the Boeing Harpoon programme and it will run concurrently with existing orders for the supply of deck launch systems. More importantly, it will help secure and create further jobs at MB Aerospace's sites in Burnley.

It is a significant extension to the company's order book with Boeing Integrated Defense Systems, and it will be managed by MB Aerospace's plant in Burnley which specialises in the supply chain management, integration and assembly of defence systems for a range of global defence contractors.

The Boeing Harpoon is one of the world's most successful anti-ship missiles and it is currently supplied to 27 countries worldwide by the US Navy, one of Boeing's largest customers. MB Aerospace will co-ordinate and programme-manage an approved global supply chain to enable manufacture, test and final assembly of the launch systems.

Craig Gallagher, chief executive officer of MB Aerospace Holdings Ltd, said: "We have initially secured a $10 million, one-year contract from Boeing to supply Harpoon deck and torpedo launch systems, but due to the success of the Harpoon programme, Boeing was able to extend our contract until 2013.

"We are delighted to continue our long-standing relationship with The Boeing Company and we're proud to be associated with Boeing on this prestigious international programme.

 "This contract demonstrates the success of our on-going strategy to provide service support to mature, late-life platforms and equipment. We have a well-established, global supply chain in place and our partners, both in Europe and the US, played a key role in ensuring that we were awarded this extension.

"We can now concentrate on expanding our operations in Burnley and Motherwell and growth via acquisition is something that we will consider going forward.

Ian Lucarz, general manager of MB Aerospace's Burnley site, said: "We will manage more than 100 suppliers and several thousand line items to provide Boeing with a high level of service, despite increasing global competition, raw material availability and the impact of trading in US dollars amongst other factors."

Defence minister Bill Rammell MP said: "I am delighted to see MB Aerospace has won this major contract extension with Boeing. This clearly demonstrates the excellence of the work being carried out by workers in Burnley and Motherwell and is another example of the strength of the Anglo-American partnership.

"During these tough global economic times, it's great to see a UK company not only competing on the international stage but winning a defence contract that will create and safeguard jobs for years to come."

Burnley MP Kitty Ussher added: "I am delighted to hear that MB Aerospace has secured this contract. Burnley has a strong manufacturing tradition, and it's great to see large international companies recognising this.

"This contract will safeguard the jobs of staff at MB Aerospace and will allow the company to expand its Burnley operations, creating more jobs, which is great news for my constituents."

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