Multi-year agreement valued at approximately $20 million
FARNBOROUGH, United Kingdom, July 14, 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 renewed a contract with Viking Air Limited of Victoria, British Columbia for the fabrication of the nose landing gear for the Twin Otter Series 400 aircraft.
The renewal extends the current agreement through the end of calendar year 2018 and also includes the production of aftermarket components. Based on current program expectations, this multi-year agreement could have a total value of approximately $20 million.
"Héroux-Devtek designed the original de Havilland legacy Twin Otter's landing gear in the 1960s, and this well-established program has been one of the Canadian aerospace industry's flagships ever since. This longevity not only testifies to the quality of the aircraft, but it also highlights the extent over which revenues from life-cycle design programs can be earned. Héroux-Devtek is proud to further contribute to the success of the best-selling 19-passenger commuter airplane in the world," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek.
"Heroux-Devtek's experience with the Twin Otter aircraft has made them a trusted supplier to Viking since the inception of the Series 400 Twin Otter program," noted Stephen Hemphill, Viking vice president, Supply Chain. He added, "Their ability to reliably provide quality components for our Series 400 production has made them integral to our success as a world class manufacturing organization."
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.
The Series 400 Twin Otter is the best-selling next generation turbo-prop aircraft in its class, with Viking aircraft sold and delivered to 23 countries worldwide. Viking provides OEM support for the global fleet of de Havilland legacy aircraft (DHC-1 through DHC-7) and forms part of Westerkirk Capital Inc, a Canadian private investment firm with substantial holdings in the hospitality, aviation, and real estate sectors.
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