Ducommun Awarded 10 Year, $200 Million Contract for Engine Nacelle Components

Ducommun Incorporated (NYSE: DCO) today announced the award of a long term contract to produce nacelle components using its proprietary VersaCore Composite™ technology for a leading engine OEM to support a high rate single aisle commercial aircraft. The contract is valued at greater than $200 million and runs through 2029. Ducommun will complete the composite product design and process development in 2018-19 and expects to begin full production in 2020.

“Ducommun’s VersaCore Composite™ process is a game-changing technology that enables the manufacture of lightweight aircraft structures at a lower cost without compromising strength for our Aerospace and Defense customers,” said Stephen G. Oswald, Ducommun’s chairman, president and chief executive officer. “VersaCore Composite™ is an important part of Ducommun’s portfolio of proprietary solutions that provide innovative manufacturing expertise. The Nacelle components will also be mainly produced in Ducommun’s low cost Guaymas, Mexico facility, leveraging our footprint.”

VersaCore Composite™ proprietary composite technology is currently used on commercial and military aircraft structures, including aircraft engine nacelles. Other ideal applications include aircraft doors, flight control surfaces, fairings, ducts and contoured parts. The technology offers integrated component design while providing high part strength and integrity. For customers, this means fewer parts, reduced assembly time and lower amounts of inventory to manage.