Company Lands $15M Parts Contract

A South Shore aerospace company has secured a multimillion-dollar contract to provide parts for Canada's new fleet of search and rescue helicopters.

Composites Atlantic will manufacture sponsons for Cormorants, EH-101 helicopters. Sponsons are fender-like chambers into which aircraft landing gears fit.

The total value of the contract is expected to reach $15 million over seven years, creating 30 direct and indirect jobs at the company's Lunenburg plant. It is the first contract for a Nova Scotia company for the search and rescue fleet.

"This is a major deal for Composites Atlantic," said executive vice-president Maurice Guitton in a phone interview from the Paris Airshow, the largest air show in the world. "It will generate work immediately for our high-technology facility and contribute significantly to our future growth as sales of the Cormorant helicopter increase worldwide."

Composites Atlantic will initially manufacture the sponsons for Canada's 15 Cormorant helicopters, an order worth $2 million. The company will also supply sponsons for all future EH-101 helicopters, including those destined for the British Royal Air Force and the Italian navy. Those contracts are expected to reach at least $13 million.

The contract was awarded today by Team Cormorant, the group selected by Canada in January 1998 to provide the helicopters. Team Cormorant's parent companies are GKN Westland Helicopters of the United Kingdom and Agusta of Italy.

"Composites Atlantic won this contract by proving it has the capabilities, the professionalism and the competitiveness," said Frank Bamford, head of Region America for GKN Westland Helicopters. "This is a significant initial order that will build a solid foundation for future growth. In fact, we're already negotiating with other Nova Scotia companies about other opportunities."

"This contract has been almost a year in the works, and our partners at Economic Development and Tourism have been very helpful in bringing the deal together," said Mr. Guitton, who was the winner of this year's Export Achievement Award for outstanding contribution to the export market by an individual.

"This is a great day for Lunenburg, for Nova Scotia's aerospace industry and, of course, for Composites Atlantic," said Manning MacDonald, Minister of Economic Development and Tourism. "Our continuing support of this company over the years continues to pay off. This contract is an international endorsement of the capacity and talent of our local industry. We intend to build on this, to work on other opportunities for Nova Scotia companies."