TORONTO, April 3, 2017 /CNW/ - Magellan Aerospace ("Magellan") announced today the sale of the land and building of its Mississauga facility on Friday, March 31st, 2017. The sale will generate net cash proceeds of approximately $32.7 million.
Magellan will lease a new facility that will be constructed by the buyer on the existing site. The facility rationalization is being driven by the need to improve Magellan's manufacturing efficiencies, operational performance, profit margins and cash flow.
Commenting on the rationalization, Magellan's Chief Executive Officer, Phillip Underwood stated, "Magellan's customers expect and demand that we continue to reduce costs and improve efficiency to remain competitive. The decision for a facility rationalization allows for reduced cost and increased overall Magellan manufacturing efficiency, while simultaneously preserving our manufacturing capacity for the future."
Through careful planning and monitoring Magellan will minimize any disruption our customers may experience. The move to the newly constructed facility is expected to be completed and operational in the early part of 2019.
About Magellan Aerospace
Magellan Aerospace is a global aerospace company that provides complex assemblies and systems solutions to aircraft and engine manufacturers, and defence and space agencies worldwide. Magellan designs, engineers, and manufactures aeroengine and aerostructure assemblies and components for aerospace markets, advanced products for military and space markets, industrial power generation, and specialty products. Magellan is a public company whose shares trade on the Toronto Stock Exchange (TSX: MAL), with operating units throughout Canada, the United States, the United Kingdom, India, and Poland.
Forward Looking Statements
Some of the statements in this press release may be forward-looking statements or statements of future expectations based on currently available information. When used herein, words such as "expect", "anticipate", "estimate", "may", "will", "should", "intend", "believe", and similar expressions, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Corporation believes are appropriate in the circumstances. Many factors could cause the Corporation's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including those described in the "Risk Factors" section of the Corporation's Annual Information Form (copies of which filings may be obtained at www.sedar.com). These factors should be considered carefully, and readers should not place undue reliance on the Corporation's forward-looking statements. The Corporation has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Magellan Aerospace Corporation
For further information: Mr. Daniel Zanatta, Vice President, Business Development, Marketing and Contracts, Magellan Aerospace Limited, Ph. 905 677 1889 x554; Mr. Don Boitson, Vice President, North American Operations, Magellan Aerospace Limited, Ph. 905 677 1889 x223