Newfoundland Bonding & Composites sign MOU with Sikorsky Aircraft Corporation

In Gander today Premier Brian Tobin, along with Newfoundland Bonding & Composites Ltd. (NB&C) President, Bob Gosse, announced that NB&C has signed a five year Memorandum of Understanding worth $7.5 million with Sikorsky Aircraft Corporation, which came about as a result of the New England Trade Mission this past spring.

"This MOU will see NB&C producing composite and bonded-metal components for Sikorsky," said Mr. Gosse. "This initial commitment by Sikorsky is substantial and forms the foundation of an important alliance for NB&C, which we are confident will flourish over time."

Paul Brandt, Manager of International Procurement for Sikorksy, adds: "The MOU offers opportunities for both companies. Sikorsky will gain a qualified source for composite parts at competitive prices; NB&C has the opportunity to expand its business base and increase exports to the United States through Sikorsky. Success in this project could pave the way for further cooperation between the parties beyond the current estimated values in the MOU."

The MOU will sustain approximately 12 full-time equivalent jobs. It is in addition to a $2 million contract with GKN Westland Helicopters to provide components for the EH101 and Lynx aircraft, and a contract worth approximately $1 million with Agusta to provide components for the A109 aircraft.

NB&C has also been officially recommended by the Quality Registration Firm, KPMG, to receive its ISO 9002 Certificate for the manufacture of bonded-metal and composite parts. The ISO 9002 designation is an internationally recognized quality standard intended to be utilized as a tool for continuous improvement.

"ISO 9002 Registration will allow NB&C to access aerospace markets around the world," noted Bob Gosse. "This registration proves to our current customers that we have a proven and effective system to handle their contracts, and that this company operates in a manner which promotes quality and cost-effectiveness. It also demonstrates to potential customers that NB&C is a quality company with which to do business."

NB&C has also recently added a piece of world-class technological infrastructure. Its six axis router is a new milling and ultrasonic cutting machine, and is the second of its kind in existence. It enables operators the ability of program control and manipulation in concert with machine and tool motion control, allowing the achievement of quality finishes in excess of any existing or future customer requirements.

"Not only has NB&C achieved important designations, and secured viable long-term alliances with companies such as Sikorsky, GKN Westland and Agusta, but it has also exceeded its initial employment targets by 80 per cent in its first year of operation," noted Premier Brian Tobin. "Private enterprise like this is vital component in continued economic development of rural Newfoundland and Labrador."

The company is currently in the process of bidding on, and waiting for contract awards for, 15 different work packages with 10 different organizations worldwide. NB&C is currently manufacturing instrument panel assemblies and Coamings for EH101 helicopters and fuel support panels for Lynx helicopters. It is also repairing a number of components including: helicopter engine cowlings, foreign object damage shields, rail skis, and aircraft trim tabs. The company currently employs 90 people.

Newfoundland Bonding & Composites is a subsidiary of CHC Helicopter Corporation, the world�s leading provider of helicopter transportation services, with a combined fleet of 320 light, medium and heavy aircraft operating in 21 countries, an with approximately 2,600 employees worldwide.

Media contact:

Robert J. Gosse                                                          Heidi Bonnell
President                                                                   Office of the Premier
Newfoundland Bonding & Composites Ltd.                    (709) 729-3960
P. O. Box 480
Gander, NF
(709) 256-6111

2000 07 25                          1:30 p.m.