MTI Global Inc.
TSX : MTI

MTI Global Inc.

March 30, 2006 08:30 ET

MTI Global Awarded Boeing 787 Dreamliner Contract From Spirit AeroSystems Inc.

MISSISSAUGA, ONTARIO--(CCNMatthews - March 30, 2006) -

MTI Global Establishes MTI de Baja, a Joint Venture Manufacturing Facility in Mexico

MTI Global Inc. announced today the award of a new contract, from Spirit AeroSystems Inc. of Wichita, Kansas, to supply thermal and acoustic interior insulation systems for the nose and forward fuselage section of the all-new Boeing 787 Dreamliner aircraft, to be delivered by MTI's PolyFab division.

"This win clearly establishes MTI PolyFab as a global leader in thermal and acoustic insulation systems. We are now the only insulation systems supplier working with all of the major aircraft manufacturers," said Bill Neill President and Chief Executive Officer. "This represents the culmination of a significant effort in time and resources and a contract of this magnitude clearly changes the dynamic of this company in the future."

The initial value of the contract is approximately US $23,000,000.

Boeing estimates the total market for the 787 family of models to be more than 3500 aircraft over the next 20 years and expects to deliver more than half of the total or 1750 aircraft. To date, sales of the 787 Dreamliner have totaled 385 aircraft making the launch of this model the most successful in Boeing's history.

The first delivery of the MTI PolyFab thermal insulation system is expected in late 2006. The first flight of the 787 is scheduled in 2007 with the first aircraft delivery slated for 2008. Two derivative models, the 787-9 and the 787-3, are scheduled to be delivered in 2010.

"To be included as a partner on this program reaffirms MTI PolyFab's superior engineering and materials knowledge capabilities," said Marc Simard Executive Vice President. "The ability to supply cost competitive systems and add significant product support is the distinct advantage of the MTI PolyFab offering."

The aircraft structural components have been awarded to four different contractors of which Spirit has been contracted to supply the forward section of the aircraft.

MTI de Baja Manufacturing Facility

MTI Global is also announcing a joint venture in the creation of Manufacturing Technologies Inc. de Baja (MTI de Baja) for the manufacturing support of new aircraft programs. The joint venture establishes a supply contract set up under the Maquiladora program in Mexico for MTI Global.

The 35,000 square foot facility is located in Ensenada, Mexico due to its proximity to the United States border and the fact that it was rated the safest metropolitan city in Mexico.

"The facility will initially support the 787 deliveries and offer additional capacity for future programs," said Mike Westlund, MTI PolyFab Program Manager. This strategic location offers a cost competitive just-in-time delivery location to all our future West coast customers."

MTI Polyfab, Canada, will remain as the "Centre of Excellence" for Engineering, Development of Thermal and Acoustic Systems and the primary manufacturing facility for MTI's other customers.

MTI Global will invest approximately $700,000 USD in the facility over the next two years, in order to equip and structure the layout similar to MTI PolyFab's current manufacturing process. The facility, which has expansion capabilities to over 80,000 square feet, will logistically complement MTI's existing manufacturing locations in Germany, the United States, Canada and France.

About the Company

MTI Global Inc., designs, develops and manufactures custom-engineered products using silicone and other cellular materials. The Company serves a variety of specialty markets focused on three main product categories: Silicone, Aerospace and Fabricated Products. MTI's manufacturing divisions develop and produce silicone foam using patented technology. The Company designs and fabricates energy management systems from a variety of flexible, cellular materials. MTI also produces and distributes specialty silicone elastomer products. MTI's primary markets are aerospace and mass transit. Secondary markets include sporting goods, automotive, industrial, institutional, electronics, and the medical market through a 51% interest in Sterne SARL of Cavaillon, France. MTI's head office and Canadian manufacturing operations are located in Mississauga, Ontario, with international manufacturing operations located in Richmond and Buchanan, Virginia; Bremen, Germany; and a joint venture in Baja, Mexico. The Company also has sales operations in England and Sweden, and an engineering support centre in Brazil.

The foregoing press release contains forward-looking statements and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that could cause results or events to differ from current expectations include the impact of price and product competition, general industry and market conditions and growth rates and reliance on key customers. For additional information with respect to these and other factors, see the reports filed by MTI Global Inc. with the Ontario Securities Commission. MTI Global Inc. disclaims any intention or obligation to update or revise any forward-looking statements.

Contact Information

  • MTI Global Inc.
    Bill Neill
    President and Chief Executive Officer
    (905) 564-9700
    or
    Fleishman-Hillard Canada
    Anne Lachance
    Investor Relations
    (416) 214-0701