LONGUEUIL, QC, May 13 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced initiatives to optimize and consolidate production capacity, while further enhancing productivity of its Québec-based facilities.
The Company announced that its Rivière-des-Prairies ("RDP") facility will close in September 2010. Some of the production, essentially consisting of small landing gear components, will be transferred to Héroux-Devtek's other facilities in the Greater Montreal area. Under the plan, some of the RDP workforce of 34 employees will be relocated to the Company's other local facilities. These initiatives will consolidate production capacity across Héroux-Devtek's facilities. The Company will record restructuring charges through the current fiscal year (fiscal 2011) of approximately $1.1 million ($0.8 million after income taxes) related to these initiatives.
"Héroux-Devtek must be proactive to ensure it remains globally competitive in light of economic uncertainty and currency volatility," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "We regret the impact of these initiatives for the affected employees and their families, but these measures will further enhance the on-going viability of our Québec operations and its workforce which exceeds 900 people throughout the province."
Héroux-Devtek (TSX: HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair and overhaul of related systems and components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 65% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and Rivière-des-Prairies); Kitchener and Toronto, Ontario; Arlington, Texas; as well as Springfield, Cleveland and Cincinnati, 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 Héroux-Devtek Inc.
For further information: For further information: Gilles Labbé, President and Chief Executive Officer, Héroux-Devtek Inc., (450) 679-3330; Martin Goulet, CFA, MaisonBrison, (514) 731-0000