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Héroux-Devtek Inc., (“Héroux-Devtek” or the “Corporation”), a leading Canadian manufacturer of aerospace products, announces initiatives to optimize and consolidate manufacturing capacity, while further enhancing productivity throughout the organization. These initiatives are in keeping with Héroux-Devtek’s operating strategy of focusing on specialized centres of excellence.
Given the substantial demand reduction for military aftermarket products in the United States, the Corporation will proceed with the permanent layoffs of approximately 55 employees at its manufacturing plant located at 710 Thurber Street, in Longueuil. The layoffs should begin in April 2014 and are expected to take place over a 12-month period, after which approximately 15 workers will remain on site. Héroux-Devtek will continue to carry out such operations at its other centres of excellence in manufacturing.
These measures will result in a charge of approximately $5 million before income taxes to be spread over the fourth quarter of the fiscal year ended March 31, 2014 and the first half of the 2015 fiscal year.
Going forward, Héroux-Devtek’s Longueuil operations will focus on its main plant, located at 755 Thurber Street, which will have a combined workforce of approximately 360 employees. This facility is the Corporation’s centre of excellence in repair and overhaul, surface treatment and assembly of medium- to large-size landing gear systems. Since the 2007 fiscal year, investments of approximately $40 million have been made at this facility, mainly to modernize the plating department and acquire state-of-the-art assembly equipment.
“The transformations affecting our industry require great flexibility and rapid adaptability, and Héroux-Devtek must be proactive to remain competitive. We regret the impact for the affected employees and their families, but the steep decline in U.S.-based customer demand for military aftermarket products called for adjustments in our manufacturing base. Héroux-Devtek is committed to invest in its centres of excellence and to deploy capital in initiatives that provide customers with value-added products and services. Success will be measured by our ability to further step up our presence in the global supply chain, as proven by the long-term agreement with Boeing to supply complete landing gear systems for the 777 program,” said Gilles Labbé, president and chief executive officer of Héroux-Devtek.
