EL MONTE, CALIF. - Family-owned M.C. Gill Corp. has scored a coup with a three-year contract from Boeing Co. for its aramid paper honeycomb require-ments, effective March 1. Hexcel Corp. had held the contract. Stephen E. Gill, president and chief executive officer, said the contract is ``a large step for us'' and opens a third market. M.C. Gill is the largest manufacturer of fiberglass-reinforced aircraft cargo liners and among the largest makers of aircraft compositesandwich flooring panels.
Gill said the contract will boost factory utilization to 100 percent from 50 percent, but will not require any borrowing.
``We are self-sufficient'' in financing, he said.
M.C. Gill has added two ovens to increase capacity. One oven is on-site, and the other was expected last week.
``Based on the current build rate, we believe sales under the contract will be in the mid- to upper $30 [millions]'' during the three years, he said.
Gillcore HD honeycomb will be delivered to Boeing Commercial Airplane Group facilities in the Seattle area; Wichita, Kan.; and Winnipeg, Manitoba.
M.C. Gill downsized during the four-year commercial aerospace downturn, but the addition of the Boeing contract will result in 1995 sales of more than $30 million, he said. Hiring has resumed. The firm has about 155 employees, and expects to reach 200 soon, he said.
M.C. Gill began producing honeycomb in 1983 after supplier Hexcel moved into M.C. Gill's flooring panel market.
``Hexcel made a strategic decision to make panels as well as honeycomb,'' Gill recalled. ``It became incumbent on us to develop a honeycomb source ourselves. We developed our own Nomex and aluminum honeycomb ... supplied ourselves, increased capacity and qualified [as suppliers] at Douglas and Boeing,'' Gill said.
Douglas Aircraft Co., in Long Beach, Calif., is a unit of McDonnell Douglas Corp.
Hexcel of Pleasanton, Calif., emerged Feb. 9 from bankruptcy-law protection and expects 1995 sales of $307 million.
M.C. Gill occupies 210,000 square feet in El Monte. Founder M.C. Gill, 84, is chairman.