Aerospace supplier says Ball owes $600K for parts

BROOMFIELD — Kansas-based aerospace-parts manufacturer HM Dunn Co. Inc. sued Ball Aerospace & Technologies Corp. last week, alleging the soon-to-be severed division of Ball Corp. (NYSE: BALL) is refusing to pay a $601,000 bill. 

The lawsuit filed in Broomfield County District Court claims that HMD and Ball signed a contract last year in which HMD would provide Ball with parts that would ultimately be sold to Lockheed Martin Aeronautics.

The parts were provided in March 2022, the complaint said, and in June 2022, Ball infomed HMD that the supplies did “not meet quality control specifications and requisite measurements prescribed” in the contract. Specifically, Ball took issue with HMD’s use of a technical process called the “datum shifting technique” in crafting the parts. 

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The lawsuit alleges that “prior to HMD commencing manufacture of the parts, Ball visited HMD’s facility to conduct a quality system assessment, where HMD’s processes and systems for manufacture of the parts, including quality control processes and systems, were reviewed by Ball,” which was aware of HMD’s intent to use datum shifting in the manufacturing process.

HMD claims that Ball, representatives of which did not immediately respond to requests for comment Tuesday, and its ultimate customer Lockheed have both in the past accepted parts made using the technique in question.

“HMD incurred costs in the approximate amount of at least $601,238.62 in acquisition of raw material and in manufacturing the parts for Ball,” the complaint said. 

Ball Aerospace, which has a major research and development operation in Boulder, will soon be acquired by British aerospace company BAE Systems PLC for $5.6 billion.

Leaders with the parent Ball, a global can-manufacturing giant, said in August that they plan to use proceeds — after taxes, the windfall is expected to be $4.5 billion — to buy back stock and provide shareholders with dividends. The deal will also help Ball reduce its debt.

“Aerospace is not a hugely cash-generative business,” Ball CEO Daniel Fisher said when the deal was announced this summer, and offloading the division allows Ball to focus on its can manufacturing business.

The lawsuit is HM Dunn Co. Inc. v. Ball Aerospace & Technologies Corp., case number 2023CV30246, filed on Oct. 27 in Broomfield County District Court.