Héroux-Devtek closes plant, eliminates 225 workers
Héroux-Devtek Inc. of Longueuil, Quebec, on May 5 announced restructuring initiatives that will include a 10 per cent reduction of its total workforce, or approximately 225 employees – 125 of these jobs are located in Quebec. Héroux-Devtek will be closing its plant that was formerly known as Alta Precision.
The company, which describes itself as the world’s third-largest landing gear manufacturer, explains its restructuring is driven by lower production rates in the commercial aerospace market as a result of the COVID-19 pandemic.
“While our defense activities have been generally insulated from the global pandemic, we are seeing lower demand for our commercial products,” said Martin Brassard, president and CEO, Héroux-Devtek. “We must therefore take the difficult but necessary decision to rationalize our cost structure by adjusting our manufacturing capacity to the current unprecedented environment. We regret the impact these actions will have on affected employees and will put in place appropriate measures to support them.”
The company estimates these restructuring initiatives, which it plans to complete over the remainder of the fiscal year, will result in a non-recurring charge totalling approximately $12 million before taxes.