Paragon Private Equity - Buy Out and Expansion Capital

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U.S. fighter jet parts all the way from sa
The first "top secret" parts made by South Australian company Levett Engineering for U.S. plane maker Lockheed Martin's new Joint Strike Fighter leave Adelaide this week.

The Elizabeth engineering firm is the only SA supplier of four Australian companies contracted to the $260 billion F-35 Lightning II Joint Strike Fighter program.

Levett business development manager Mal Lowen said this week's shipment of airframe components would leave Adelaide for the U.S. on Friday, designed for a proto-type strike fighter aircraft.

U.S. Defence Department restrictions prevented details of the parts being released, he said.

The initial $60,000 supply contract was the first of Lockheed Martin's supply contract expected to run for 25-30 years.

SA Governor and former Royal Australian Navy Rear Admiral Kevin Scarce will be on hand today to push the button on a new machine which will make airframe components for the plane.

Levett has also signed a $A25.6 million letter of intent with U.S. engine manufacturer Pratt & Whitney to produce components for the JSF afterburner.

Contracts with U.S. companies would quadruple the engineering firm's $2.5 million annual turnover to $10 million in five years.

"What we want to get across to local companies doing this JSF work - obviously we're hoping as the years go, by 2012, when the big numbers fall - (is that) other SA companies will benefit," Mr Lowen said.

"Importantly for us, this expansion will benefit our current customers in Australia as they will be getting this new technology and skills upgrade on the back of the JSF project," managing director Paul Levett said.

"We will also be looking for more highly skilled tradespeople and support personnel."

Already a defence supplier for many years, the company was well-positioned to bid for work on the Air Warfare Destroyer program in South Australia, Mr Lowen said.

He said that Australia was expected to buy 100 of the U.S.-built fighter planes to replace the F-111s and F/A 18 Hornets.

 


   

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