News Review: EFIC supports Quickstep in JSF ramp-up | ADM Dec 2011 / Jan 2012
Australian advanced materials company Quickstep Holdings Limited has received an Export Finance Guarantee from the Federal Government’s export credit agency, the Export Finance & Insurance Corporation (EFIC), to underpin its involvement in the Joint Strike Fighter (JSF) program and the manufacture of JSF components at its newly established facility in Bankstown, NSW.
The guarantee has enabled the firm’s subsidiary Quickstep Technologies Pty Ltd to negotiate a loan facility agreement with the ANZ Bank to fund the purchase of capital equipment and intellectual property to manufacture and supply composite parts required to for the JSF program.
The loan facility comprises a $10 million loan plus up to $3.3 million in capitalised interest. It has a maximum term of 10 years, subject to earlier refinancing after multi-year F-35 JSF production contracts are awarded. The loan will have an availability period of four years. Repayments of principal will be over five years, commencing in year five.
Quickstep’s Managing Director, Philippe Odouard, said he was very pleased with the strong support being provided by EFIC and the ANZ, which reflected the strategic nature and significance of the emerging composites manufacturing industry in Australia and the importance of the JSF program.
“The ANZ facility enabled by EFIC comes at an exciting time for Quickstep, with the Company on track to deliver on the first purchase order for F-35A JSF Group 1 parts and the re-development of our new Bankstown facility in New South Wales well underway,” Odouard said.
“The Federal Government’s support assists Quickstep to supply some of the most advanced composite components in the world to one of the most advanced aircraft in the world. This loan provides Quickstep with the required financial strength to contribute to the JSF global supply chain as a competitive supplier and will assist in establishing the long term viability of a high technology composites industry in Australia,” Odouard said.
Under its Long Term Agreement (LTA) with principal F-35 contractor Northrop Grumman, signed early this year, Quickstep is set to deliver the first F-35 Lightning II parts in 2012, including a large number of composite doors and panels.
“Quickstep will now work towards securing long-term agreements for Group 2 and Group 3 parts, and I am pleased to say that this is progressing well,” Odouard said.
Automotive market opens up also
Meanwhile, Quickstep has also teamed with German car manufacturer Audi in a joint R&D project aimed at automating the volume manufacture of composite parts and reduce manufacturing costs by 30 per cent by delivering A Grade automotive finish parts.
The “PRESCHE Project” aims to reduce manufacturing costs by 30 per cent by combining independent composite manufacturing technologies including Quickstep’s Resin Spray Transfer (RST) technology and patented Quickstep Process – an innovative out-of-autoclave technology that uses Heat Transfer Fluid in fluid-filled trays to rapidly cure advanced composites.
Odouard, said the launch of the PRESCHE program in Germany represented an enormous opportunity for the Company. “The success of this program will position us to target a very significant medium term opportunity for composites in the car industry.
“This has the potential to provide a very substantial second growth front for the Company alongside our existing activities in the Aerospace sector, where our major focus is on the imminent commencement of manufacturing of composite components for the F-35 Joint Strike Fighter Program.”
The PRESCHE project was set to start in November 2011 and will run until October 2014.