Carbon fibre manufacturer Quickstep Holdings (ASX: QHL) has extended its contract with major global aerospace and security company Lockheed Martin for a further five years.
Under an existing contract, Quickstep has been supplying Lockheed with wing flaps for C-130J/LM-100J aircraft models and the contract is due to wrap up in late 2019.
Today’s memorandum of understanding allows for Quickstep to continue supplying wing flaps through to 2024.
To-date, Quickstep has delivered its contracted parts to Lockheed on-time, while meeting Lockheed’s stringent standards.
Quickstep chief executive officer and managing director Mark Burgess said the company was “proud” to be supplying Lockheed and would look at increasing its supply on the C-130J/LM-100J model.
“We anticipate improved efficiency from our growing production programs and the ongoing implementation of lean manufacturing processes and practices across the business,” he added.
Late last month, Quickstep reported it would receive funding to produce housings for an F-35 Lightning II countermeasure flare, with the F-35 Lightning II program the world’s largest military aerospace initiative.
Chemring Australia will provide funding for Quickstep to establish the manufacturing capability through the F-35 Lightning Joint Program Office, which has secured a multimillion dollar contract with the US Government.
Via this project, Quickstep plans to commission additional advanced production processes and technologies at its Bankstown aerospace manufacturing facilities in New South Wales.
The company claims will extend its capability for the F-35 program and other defence and aerospace contracts.
To boost its capabilities, Quickstep has also established a research and development manufacturing and process centre in Victoria.
This latest contract with Lockheed adds to Quickstep’s portfolio of long-term contracts including Northrop Grumman, BAE Systems, Marand Precision Engineering as well as locking-in new business with Boeing Defense, Chemring and General Atomics.
ResApp Health teams up with Lockheed
Meanwhile, Quickstep isn’t the only ASX-listed company to collar a contract with defence and aerospace major Lockheed, with ResApp Health (ASX: RAP) inking a collaboration agreement with the major to develop a software suit that can predict warfighter readiness in defence personnel using a smart phone.
ResApp is advancing a smartphone app that can detect and diagnose respiratory diseases including asthma, pneumonia, bronchiolitis and croup via the patient’s cough sound.
Lockheed and ResApp anticipate the new software would enable US soldiers to be screened in real-time while out in the field, which would better-enable their combat readiness to be determined.
Shares in Quickstep rose more than 4% to reach A$0.093 in late morning trade.