LONGUEUIL, QC, Dec. 18, 2013 /CNW Telbec/ - Héroux-Devtek Inc. (TSX:
HRX), ("Héroux-Devtek" or the "Corporation"), a leading Canadian
manufacturer of aerospace products, announces that its wholly-owned
subsidiary HDI Landing Gear USA Inc. has signed a long-term contract
with The Boeing Company to supply complete landing gear systems for the
Boeing 777 and 777X programs. This contract, the largest ever awarded
to Landing Gear operations, follows the signature of a Memorandum of
Agreement (MOA) with Boeing, announced on September 16, 2013.
Under the terms of the long-term contract, HDI Landing Gear USA Inc.
will supply complete landing gear systems, including the main and nose
landing gear, and the nose landing gear drag strut. The contract
includes manufacturing parts for Boeing to sell in the aftermarket.
Under the multi-year contract, deliveries will begin in early calendar
2017, with an option to extend the contract through 2028.
"The signature of this long-term contract brings Héroux-Devtek one step
closer to initiating the execution of the largest contract ever awarded
to its landing gear operations," said Gilles Labbé, President and Chief
Executive Officer of Héroux-Devtek. "The entire organization is excited
about this development and eager to demonstrate its world-class
capabilities in producing large-scale, complete landing gear systems.
Furthermore, we are in the process of finalizing our plan for capital
investments required to carry out this mandate. This plan will allow
Héroux-Devtek to provide Boeing with cost-effective products of
The Boeing 777 is the world's most successful twin-engine, long-haul
airplane. As at December 9, 2013, the program had received 1,519 orders
from 67 global customers, while the backlog stood at 363 aircraft.
A significant factor that was also considered in extending the contract
was Boeing's Industrial Regional Benefits (IRB) commitment in Canada.
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 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. 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 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:
President and Chief Executive Officer
Tel.: (450) 679-3330
Martin Goulet, CFA
Tel.: (514) 731-0000