Long-term agreement will be the largest contract ever awarded to Landing
Gear operations
LONGUEUIL, QC, Sept. 16, 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 Memorandum of
Agreement (MOA) with The Boeing Company to supply complete landing gear
systems for the Boeing 777 and 777X, contingent on launch of the 777X
program. Following this agreement with Boeing, a multi-year contract is
expected to be signed before the end of calendar 2013.
Under the terms of the MOA, 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 MOA includes
manufacturing parts for Boeing to sell in the aftermarket. Under the
expected multi-year contract, deliveries would begin in early calendar
2017, with an option to extend the contract through 2028.
"This MOA is a landmark achievement for Héroux-Devtek, as the long-term
contract with Boeing would represent the largest contract ever awarded
to our landing gear operations," said Gilles Labbé, President and Chief
Executive Officer of Héroux-Devtek. "We are extremely proud to further
strengthen our business relationship with Boeing. The 777 has been a
longstanding strategic program for Héroux-Devtek and we are proud to
have been selected by Boeing to supply complete landing gear systems
which clearly demonstrates their confidence in our capabilities to
produce high quality product while meeting the affordability
requirements of the market. Our expanded content on a leading large
commercial aircraft program significantly enhances Héroux-Devtek's
reputation and competitive position in the aerospace industry. It also
provides a solid foundation we can leverage to ensure the long-term
growth and sustainability of our operations, as we step up our presence
in the global supply chain."
"We are pleased to sign this MOA with HDI Landing Gear USA Inc.," said
Kent Fisher, vice president and general manager, Boeing Commercial
Airplanes Supplier Management. "They presented us with the best offer
in terms of technical capability, cost and collaboration."
The Boeing 777 is the world's most successful twin-engine, long-haul
airplane, with 1,460 orders for 777s from 66 global customers to date.
A significant factor that was also considered by Boeing in executing
this MOA 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 MOA 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.
PROFILE
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.
FORWARD-LOOKING STATEMENTS
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.
