U.S. Aerospace, Inc. (OTCBB: USAE), a U.S. aerospace and defense contractor, today announced that the Company has entered into a Strategic Cooperation Agreement with Supply Chain Management & Procurement of AVIC International Holding Corporation (AVIC) of China.
The agreement sets forth a framework for collaborating in the manufacture, importing and exporting of aircraft components and equipment. It is anticipated that the parties will bid on at least US $100 million in potential orders in the first year.
Under the agreement, the Company will provide AVIC with potential projects on which the parties can jointly bid, or specifications for aircraft parts and components to be manufactured by AVIC for the Company or its customers. AVIC will supply all personnel, materials, facilities and other resources necessary to perform the work. Minimal annual delivery values are set through 2015.
In addition, the parties have agreed to negotiate in good faith to invest together in the United States, including the purchase of manufacturing facilities, and for AVIC to invest in the Company, including the potential purchase of USAE stock.
“Building long-term relationships with leading international aircraft manufacturers like AVIC greatly enhances our production and pricing capabilities,” commented Michael C. Cabral, President of U.S. Aerospace, Inc. “Partnering with AVIC advances our ability to bid for, secure and perform work we have previously turned away or did not pursue. Increased globalization and international cooperation will benefit both companies and all of their stakeholders.”