Quickstep shares soar on Lockheed MoU

04/11/2009 - 09:39

Bookmark

Save articles for future reference.

Shares in North Coogee-based Quickstep Holdings have soared as much as 71 per cent in trade today following the announcement of an agreement struck with Lockheed Martin Corporation and another US aerospace giant.

Shares in North Coogee-based Quickstep Holdings have soared as much as 71 per cent in trade today following the announcement of an agreement struck with Lockheed Martin Corporation and another US aerospace giant.

Shares in the company, which were previously in a trading halt, leapt 30 cents to an intraday high of 65 cents before closing at 48.5c, a gain of 10.5c or 27.6 per cent on the previous closing price.

This morning Quickstep said it had signed a memorandum of understanding with Lockheed Martin and Northrop Frumman Systems Corporation to build key components for the joint strike fighter (JSF) aircraft.

The MOU paves the way for the companies to finalise a long term agreement (LTA) which would see Quickstep manufacture more than 19,000 composite doors and access panels in a contract worth more than $700 million.

The new generation aircraft is being developed for US and UK armed forces and allies, while the Australian government plans to acquire up to 100 to replace its Hornets and F-111s from 2012.

Quickstep chief executive, Philippe Odouard said the MOU was a major milestone for the company.

"The potential value of the LTA to Quickstep and Australia cannot be overstated," Mr Odouard said.

Quickstep, which manufactures strong, lightweight composite products for the aerospace sector at facilities south of Perth, says the deal could generate more than $50 million in annual turnover by 2015.

The contract is planned to last between 20 and 30 years.

Quickstep expects to sign a final long-term agreement in March next year.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options