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HDI Landing Gear signs long-term deal with Boeing

Dec. 18, 2013, Longueuil, Que. - Héroux-Devtek Inc. announces that its wholly-owned subsidiary HDI Landing Gear USA Inc. has signed a long-term contract with The Boeing Company to supply complete landing gear systems for the Boeing 777 and 777X programs.


December 18, 2013
By Carey Fredericks

This contract, the largest ever awarded to Landing Gear operations, follows the signature of a Memorandum of Agreement (MOA) with Boeing, announced on September 16.

Under the terms of the long-term contract, 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 contract includes manufacturing parts for Boeing to sell in the aftermarket. Under the multi-year contract, deliveries will begin in early calendar 2017, with an option to extend the contract through 2028.

"The signature of this long-term contract brings Héroux-Devtek one step closer to initiating the execution of the largest contract ever awarded to its landing gear operations," said Gilles Labbé, president and CEO of Héroux-Devtek. "The entire organization is excited about this development and eager to demonstrate its world-class capabilities in producing large-scale, complete landing gear systems. Furthermore, we are in the process of finalizing our plan for capital investments required to carry out this mandate. This plan will allow Héroux-Devtek to provide Boeing with cost-effective products of superior quality."

The Boeing 777 is the world's most successful twin-engine, long-haul airplane. As at December 9, 2013, the program had received 1,519 orders from 67 global customers, while the backlog stood at 363 aircraft.

A significant factor that was also considered in extending the contract 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 contract 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.