Héroux-Devtek announces a new contract with Boeing to fabricate torque tubes for the 787 Dreamliner
Multi-year initial co-production agreement
LONGUEUIL, QC, Aug. 7, 2014 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), ("Héroux-Devtek" or the "Corporation"), a leading Canadian manufacturer of aerospace products, today announced that it has been awarded a multi-year contract to manufacture torque tubes for the Boeing 787 Dreamliner.
Under the terms of the agreement, which represents new business for Héroux-Devtek, shipments are scheduled to begin in early calendar year 2015. The manufacturing of these components will be carried out at the Corporation's Laval, Quebec facility.
Production of the 787 will increase from the current rate of 10 airplanes per month to 12 in 2016 and to 14 by the end of the decade. As of July 31, 2014, the backlog for the 787 stood at 869 aircraft.
"This important multi-year contract further strengthens our business relationship with Boeing and provides Héroux-Devtek with additional content on a growing program," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "We have been manufacturing torque tubes for the Boeing 777 and the Boeing 737 for many years and this new contract for the 787 reaffirms our status as an important supplier of quality products and services to original equipment manufacturers."
This contract for the 787 Dreamliner is aligned with Boeing's 90-year history and long-term commitment to work with Canadian industry in areas of high value. This contract was awarded to Héroux-Devtek based on capabilities and competitiveness, including how this work will support fulfillment of Boeing's commitment to Canada's Industrial & Regional Benefits (IRB) policy. Canada's IRB policy requires prime contractors such as Boeing to make investments in the Canadian economy as a result of winning defense and security contracts with the Government of Canada. Boeing has several current IRB programs and is actively engaged in the pursuit of new opportunities that if successful, would generate additional obligations. This contract is another example of the synergy created when IRB's give Canadian firms the opportunity to provide Boeing with the best product at the best value.
Héroux-Devtek Inc. (TSX: HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear and actuation 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. The Corporation also manufactures electronic enclosures, heat exchangers and cabinets for suppliers of airborne radar, electro-optic systems and aircraft controls through its Magtron operations. On a pro forma basis, approximately 75% of the Corporation's sales are outside Canada, including 50% 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; Springfield and Cleveland, Ohio; Wichita, Kansas; and Runcorn, Nottingham and Bolton, United Kingdom.
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 Corporation. 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 Corporation'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 Héroux-Devtek Inc.For further information:
From: Héroux-Devtek Inc.
President and Chief Executive Officer
Tel.: (450) 679-3330
Martin Goulet, CFA
Tel.: (514) 731-0000