Heroux-Devtek Inc.
TSX : HRX

Heroux-Devtek Inc.

February 26, 2015 10:00 ET

Heroux-Devtek Inaugurates a New State-Of-The-Art Facility in Cambridge, Ontario

Facility will set new standards in regards to manufacturing technology

CAMBRIDGE, ONTARIO--(Marketwired - Feb. 26, 2015) - Héroux-Devtek Inc. (TSX:HRX) ("Héroux-Devtek" or the "Corporation"), a leading international manufacturer of aerospace products, proceeded today with the inauguration of a new manufacturing facility in the city of Cambridge, Ontario. This facility is one of the key constituents of Héroux-Devtek's comprehensive capital investment plan aimed essentially at successfully carrying out an important long-term contract to supply The Boeing Company with complete landing gear systems for the B-777 and B-777X aircraft, for which deliveries are scheduled to begin in early calendar year 2017.

The 108,000 square foot facility, located in Cambridge's new Boxwood Business Campus, will primarily manufacture large-scale, complex landing gear components. It is currently in the pre-production phase and is expected to be fully operational in June 2015. The Cambridge plant results in the creation of approximately 40 highly-skilled new jobs, while helping to retain existing jobs in Ontario. If required, the facility could be expanded by approximately 100,000 square feet. Héroux-Devtek believes this facility will set new standards in regards to manufacturing technology and be viewed as a leading example in terms of productivity throughout the industry.

This state-of-the-art facility and other related investments by Héroux-Devtek in Ontario represent a total investment of approximately $54.2 million over a five-year period, including more than $46.0 million during the fiscal years ending on March 31, 2015 and 2016. The Government of Ontario will support the Corporation through an investment of approximately $7.0 million.

"This new facility will play a pivotal role in executing the most important landing gear contract in Héroux-Devtek's history and its high level of automation will allow us to provide superior quality products to Boeing at a very competitive cost," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "This network expansion will also enable us to pursue other business opportunities to supply complete landing gear systems to our customers. We sincerely thank the Government of Ontario for supporting our industry, in which Canada ranks fifth worldwide. With this new plant, named in honor of the late John Cybulski, a long-time Chairman of our Board of Directors and an important contributor to the emergence of the landing gear industry in Canada, Héroux-Devtek's Ontario workforce will grow to approximately 250 employees, predominantly in the Regional Municipality of Waterloo which strengthens its status as our centre of excellence in the production of mid-to-large-scale, complex landing gear components."

"Today's announcement is great news for Ontario's aerospace sector and demonstrates how targeted, strategic investments can strengthen key Ontario industries. Héroux-Devtek's new facility is at the forefront of both industry technology and productivity. With this investment, we ensure these capabilities remain in Ontario where they can continue growing," added Brad Duguid, Ontario's Minister of Economic Development, Employment and Infrastructure.

"We're excited to welcome Héroux-Devtek Inc. to Cambridge and to our new Boxwood Business Campus. We look forward to working with the Héroux-Devtek team as they establish their state-of-the-art facility in Cambridge and in the future as they expand and grow. We're proud to have them choose the City of Cambridge as they grow their North American presence," said Cambridge Mayor Doug Craig.

PROFILE

Héroux-Devtek Inc. (TSX:HRX) is an international 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 hydraulic systems, fluid filtration systems, electronic enclosures, heat exchangers and cabinets for suppliers of airborne radar, electro-optic systems and aircraft controls. 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, Cambridge and Toronto, Ontario; Springfield and Cleveland, Ohio; Wichita, Kansas; and Runcorn, Nottingham and Bolton, United Kingdom.

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.

Contact Information

  • From:
    Heroux-Devtek Inc.
    Gilles Labbe
    President and Chief Executive Officer
    (450) 679-3330

    Contact:
    MaisonBrison
    Martin Goulet, CFA
    (514) 731-0000