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
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
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