Heroux-Devtek announces capacity consolidation initiatives
May 13, 2010, Longueuil, Que. - Héroux-Devtek Inc. today announced initiatives to optimize and consolidate production capacity, while further enhancing productivity of its Québec-based facilities.
The Company announced that its Rivière-des-Prairies facility will close in September 2010. Some of the production, essentially consisting of small landing gear components, will be transferred to Héroux-Devtek's other facilities in the Greater Montreal area. Under the plan, some of the RDP workforce of 34 employees will be relocated to the Company's other local facilities. These initiatives will consolidate production capacity across Héroux-Devtek's facilities. The Company will record restructuring charges through the current fiscal year (fiscal 2011) of approximately $1.1 million ($0.8 million after income taxes) related to these initiatives.
"Héroux-Devtek must be proactive to ensure it remains globally competitive in light of economic uncertainty and currency volatility," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "We regret the impact of these initiatives for the affected employees and their families, but these measures will further enhance the on-going viability of our Québec operations and its workforce which exceeds 900 people throughout the province."