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CPI Aero lands 5-year Black Hawk contract worth up to $21M

Sealer Chris Zec works on a Grumman external

Sealer Chris Zec works on a Grumman external pod at CPI Aero in Edgewood on Feb. 1, 2016. Photo Credit: Barry Sloan

CPI Aerostructures Inc., an Edgewood defense contractor, has signed a five-year contract worth as much as $21 million to make fuel panel assemblies for UH-60M Black Hawk helicopters, the company announced Monday.

The contract with the Sikorsky unit of Lockheed Martin runs from 2018 to 2022 and extends CPI Aero’s role as the producer of fuel panel assemblies for the UH-60M since 2010.

CPI Aero has delivered more than 900 fuel panel assembly units so far.

Lockheed Martin acquired helicopter maker Sikorsky from Hartford, Connecticut-based United Technologies Corp. for about $9 billion in November 2015, creating uncertainty about future contracts among Sikorsky subcontractors like CPI Aero.

“The Black Hawk helicopter has been one of the most important aircraft systems to CPI Aero for the past 10 years, and it is gratifying that it will continue to be so for at least the next five years,” Douglas McCrosson, president and chief executive of CPI Aero, said in a statement.

The new agreement calls for CPI Aero to buy all parts and system components for the assemblies, such as fuel valves, hosing and tubing, and to perform all manufacturing work.

Lockheed Martin, based in Bethesda, Maryland, is a prime defense contractor employing about 97,000 people worldwide. It makes missiles, laser weapons and aircraft, including the F-35 jet fighter.

Shares of CPI Aero climbed 1.1 percent to close Monday at $9.50 on the New York Stock Exchange. The stock has risen almost 43 percent over the past 12 months.

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