TORONTO, ONTARIO -- (Marketwire) -- 05/29/12 -- Firan Technology Group Corporation (TSX: FTG) announced today that it has signed a Letter of Intent (LOI) with SAVIC, based in Shanghai, China for the supply of Cockpit Control Panel Assemblies for the Display System of the C919 aircraft.
Under the terms of the LOI, FTG will design, develop, manufacture and supply the Display System Suite of control panel assemblies. The design, development and initial manufacturing will be completed at FTG Aerospace - Toronto and volume manufacturing will be performed at the division's facility in Tianjin, China. SAVIC was selected by GE AVIC civil avionics joint venture to provide certain airborne avionics equipment for the C919 program and is planning to order 2,355 ship sets consisting of 9 control panel assemblies per set from FTG.
SAVIC and FTG have agreed to share the cost of the design and development of the control panel assembly products. Initial funding has been received from SAVIC and the program is now underway. Further discussions and negotiations are in progress with a view to concluding a long-term Master Agreement between SAVIC and FTG. This Master Agreement will replace the LOI and cover all design, development, production and In Service Support (ISS) for the delivered products.
"This represents a tremendous opportunity for FTG to increase our value proposition in an important emerging market. FTG made a commitment to the China market in 2010 by establishing FTG Aerospace - Tianjin and we are pleased to see such significant results so soon", said Brad Bourne, President and CEO of FTG.
"SAVIC is dedicated to delivering more reliable and competitive avionics products to customers and is willing to build a long-term partnership with FTG. FTG's commitment to the China market and its localized manufacturing will benefit the C919 program", said Wang Guoqing, President of SAVIC.
"We are very excited to be a part of this strategic aircraft program with SAVIC", said Peter Dimopoulos, Vice President of Business Development at FTG. "Our continual focus on high quality, high reliability and best value offering were key factors in SAVIC's vendor selection process."
SAVIC is a high technology Chinese enterprise dedicated to the development and production of avionics and electronic products. SAVIC is a major provider of avionics products to the Chinese aviation industry and owned by Aviation Industry Corporation of China (AVIC).
ABOUT FIRAN TECHNOLOGY GROUP CORPORATION
FTG is an aerospace and defense electronics product and subsystem supplier to customers around the globe. FTG has two operating units:
FTG Circuits is a manufacturer of high technology, high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California. FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of aerospace and defense equipment. FTG Aerospace has operations in Toronto, Ontario, Chatsworth, California and Tianjin, China.
The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.
This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
Additional information can be found at the Corporation's website www.ftgcorp.com.