Héroux-Devtek announces up to $48.9 million in repayable loan contributions from the Canadian government
Contribution will support Héroux-Devtek's research and development of new technologies for complete new landing gear systems
LONGUEUIL, QC, March 28, 2013 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or the "Corporation"), a leading Canadian manufacturer of aerospace products, is pleased to announce that Industry Canada is providing the Corporation with a repayable loan contribution of up to $48.9 million. The funds will be used to support Héroux-Devtek's engineering efforts in connection with the research and development of new technologies for complete new landing gear systems. The investment will be over a five-year period and the contribution will become gradually repayable one year following the end of that period.
The investment is being made through the Government of Canada's Strategic Aerospace and Defence Initiative ("SADI"), which supports strategic industrial research and pre-competitive development projects in the aerospace, defence, space and security industries.
"Héroux-Devtek welcomes this opportunity to partner with the Government of Canada through SADI, as we look to further enhance our competitive position in the landing gear market by leveraging our world-class skills and know-how through the development of value-added products and services," said Gilles Labbé, President and CEO of Héroux-Devtek. "As the aerospace industry is increasingly global in scope, it is important for our government to support Canadian companies that export their technologies around the world. In the last decade, Héroux-Devtek has aggressively invested in the development of complete landing gear systems. This allowed us to participate as system integrator in many important programs, both in the commercial and military aerospace market, and to establish new business relationships with several of the world's leading OEMs."
"The Government of Canada recognizes the international calibre of our country's aerospace and defence sector," said the Honourable Christian Paradis, Minister of Industry. "Companies such as Héroux-Devtek consistently perform innovative research and development. Since 2007, SADI investments have built economic and technological advantages across supply chains. They have had positive effects on multiple Canadian suppliers, helping to attract and retain highly qualified people to work in this country's aerospace and defence sector."
ABOUT HÉROUX-DEVTEK INC.
Héroux-Devtek Inc. (TSX: HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear systems and components for the Aerospace market. The Corporation is the third largest landing gear company worldwide, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. Approximately 70% of the Corporation's sales are outside Canada, mainly in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; as well as Springfield and Cleveland, Ohio.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SOURCE: HEROUX-DEVTEK INC.For further information:
President and Chief Executive Officer
Tel.: (450) 679-3330
Martin Goulet, CFA
Tel.: (514) 731-0000