DULUTH, Minn., April 11, 2016 (GLOBE NEWSWIRE) -- IKONICS Corporation (NASDAQ:IKNX), a Duluth-based imaging technology company, announced that it has entered into a Long-Term Agreement (LTA) with EnCore Composite Structures, Inc., of Brea California, a major supplier of aircraft interiors, seats and composite structures to the Aerospace industry.
John Cliby, EnCore Director of Materials stated: “We are very happy to reach this milestone in our business relationship and look forward to working with IKONICS on this program.”
IKONICS will provide proprietary materials that will be used by EnCore in the manufacture of composite structures to support major commercial aircraft production. This LTA runs through 2021. Revenue from this LTA is dependent on the production rate of the commercial jetliner using this technology.
Bill Ulland, IKONICS CEO, said, “Our first discussions with EnCore began in 2008, and we have worked together to build a solid partnership over the years. This LTA is evidence of that relationship. IKONICS Advanced Materials Solutions (AMS) business unit will be supporting this LTA from their newly completed 27,300 square-foot facility, adjacent to the company’s current Morgan Park building in western Duluth. AMS provides technology and process applications for acoustic sound deadening and weight reduction benefits to the aerospace industry through its proprietary processes for machining advanced composite materials.”
This press release contains forward-looking statements regarding the terms, subject matter and potential benefits of a long-term agreement that involve risks and uncertainties. Actual results could differ materially as a result of domestic and global economic conditions, downturns in the aerospace industry, failures in counterparty compliance, unexpected production delays, competitive market conditions, introduction of new products or technologies by competitors, as well as the factors described in the Company's Forms 10-K, and 10-Q, and other reports on file with the SEC.
News Contact: Bill Ulland Chairman, President & CEO (218) 628-2217