LONGUEUIL, QC, April 26 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, today announced the construction of a new manufacturing facility in the Querétaro Aerospace Park in Mexico. The project has received all required approval from local authorities.
The first phase of the project consists of the erection of a 47,200 square-foot facility equipped with state-of-the-art machinery for the production of aerostructure components. Construction is set to begin during the second quarter of calendar year 2011, and the facility should be ready to produce its first components early in calendar year 2012. This first phase represents an investment of up to $20 million by Héroux-Devtek over the next three years. In due time, a subsequent phase could see the plant expanded to 150,000 square feet. Such expansion would eventually provide the company with the capability to manufacture and assemble aerostructure and landing gear systems.
Héroux-Devtek's new plant will benefit from close proximity with the existing facilities of several global aerospace original equipment manufacturers (OEM) in the Querétaro Aerospace Park, including Bombardier Aerospace. Along with the execution of contracts for other customers, production in Mexico will consist of certain detailed parts for Bombardier commercial and business aircraft, pursuant to the contract announced on February 8, 2011.
"Héroux-Devtek is proud to participate in the rapid development of the Mexican aerospace market," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek. "Given the increasing number of global aerospace OEMs present in Mexico, this project provides Héroux-Devtek with the capacity and the flexibility to capture additional business opportunities. More importantly, these opportunities would benefit the entire organization by leveraging the core strengths of our business units. As close proximity is important in providing superior service to OEMs, this new facility will enhance our global competitiveness by further specializing each of our manufacturing sites, thus ensuring we provide customers with value-added products and services at the most optimal cost."
About Héroux-Devtek Inc.
Héroux-Devtek Inc. (TSX: HRX), a Canadian company, serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture and repair and overhaul of related systems and components. Héroux-Devtek Inc. supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The Company also supplies the industrial segment with large components for power generation equipment and precision components for other industrial applications. Approximately 70% of the Company's sales are outside Canada, mainly in the United States. The Company's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Dorval, Laval and St-Hubert); Kitchener and Toronto, Ontario; Arlington, Texas; as well as Springfield, Cleveland and Cincinnati, Ohio.
About Querétaro, Mexico
Querétaro is the demographic center of Mexico with more than 45 million people in a 350-kilometer radius. Strategically located 220 kilometers north of Mexico City, Querétaro has developed into an important aerospace cluster with more than 50 international and national aerospace companies, such as Bombardier Aerospace, Eurocopter, Safran Group, Aernnova, Meggitt, GE, ITR and KUO. Querétaro hosts the National Aerospace University of Querétaro, the first R&D center specialized in the aerospace sector supported by the CONACYT (R&D Mexican Federal Agency), as well as the Research and Innovation Aerospace Network. The aerospace industry in Querétaro expects significant growth over the next few years.
