Héroux-Devtek Announces Workforce Adjustments at Its Longueuil Facility

LONGUEUIL, Québec, March 15, 2018 (GLOBE NEWSWIRE) -- Héroux-Devtek Inc. (TSX:HRX) (“Héroux-Devtek” or the “Corporation”), a leading international manufacturer of aerospace products, today announced workforce adjustments of about 60 employees at its Longueuil facility following the non-renewal of services provided to the US Air Force announced on March 27, 2017. The Corporation indicated at that time that the volume of business for this contract would progressively be reduced during the fiscal year ending March 31, 2019. Heroux-Devtek’s workforce totals approximately 1,365 employees.

“The transformations affecting our industry require a great deal of flexibility and the ability to adapt quickly. Héroux-Devtek must be proactive in order to remain competitive. The loss of this major contract with the US Air Force has forced us to make changes to our maintenance and repair activities at our Longueuil facility. We regret the consequences of this decision for the affected employees and their families, and we would like to thank them for their dedication to our organization. Most of the layoffs will take place in May, and we will take the necessary measures to provide these employees with appropriate support,” said Gilles Labbé, President and CEO of Héroux-Devtek.

Despite this situation, Heroux-Devtek has a strong backlog for this financial year and for many years ahead. The management team is working with key customers in the commercial and defense sectors in order to obtain new contracts.

These workforce adjustments along with other restructuring costs related to the decrease in volume discussed above will result in non-recurring charges totalling approximately $5 million before taxes, which will mainly be recorded in the fourth quarter of the fiscal year ending March 31, 2018.