LMI Aerospace has entered into memorandum of understanding outlining a five-year agreement with Gulfstream Aerospace Corporation for wing and fuselage components and kits for the Gulfstream G450, G500 and G550.
A contract is expected to be finalised by December 31, 2005, with an estimated value of $170 million over the five-year period
This memorandum of understanding provides for deliveries through to December 31, 2010, of product under existing contracts between LMI and Gulfstream as well as components currently sold only on a purchase order basis. All eight of LMI’s facilities will be involved in supporting Gulfstream.
Ronald S. Saks, President and Chief Executive Officer of LMI, said, “At current production rates, Gulfstream is our largest customer. With the execution of this agreement, we will have approximately 80 percent of our total expected revenue for 2006 under long-term agreements.