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CPI Aerostructures, Inc. (CPI Aero
®) (NYSE MKT: CVU) announced today that it has been awarded a contract by Cessna Aircraft Company (“Cessna”), a subsidiary of Textron Inc. (NYSE: TXT), to supply structural assemblies, predominately wing spars, for Cessna’s flagship aircraft, the newly-relaunched Cessna Citation X. CPI Aero estimates the value of the contract, over a seven year period, to be approximately $41 million. The intial delivery order is for approximately $5 million.
CPI Aero will be manufacturing eleven different structural assemblies, including nine spar assemblies. A wing spar is the primary structural component running the length of the wing. The longest spar assembly for the new Citation X is more than 29 feet long. CPI Aero will begin work immediately and will commence deliveries in the first half of 2013.
Originally introduced into service in 1996 as the Citation X, the new Citation X was first announced at the National Business Aviation Association convention in 2010. The X prototype made its first flight in January of this year. Federal Aviation Administration type certification is anticipated in mid-2013 with first aircraft deliveries to customers planned for the second half of 2013. The new Citation X features the same supercritical wing as the Citation X, which together with its high bypass ratio Rolls Royce engines establishes the new Citation X as the fastest operational civilian jet in the world.
Edward J. Fred, CPI Aero’s CEO & President stated “We are very proud that Cessna, the world’s leading manufacturer of General Aviation aircraft, has selected CPI Aero to provide critical assemblies for its new Citation X program. We have been a supplier to Textron Inc. through its Bell Helicopter subsidiary; however, this is our first contract from Cessna and we are excited to build upon our successes at Bell. Cessna becomes the third new commercial aerospace customer announced in the past eighteen months and justifies our strategy to target opportunities on long-lived civilian aircraft programs.”