LONGUEUIL, Quebec, 23 Sept. 2013. Officials at HDI Landing Gear USA Inc., a wholly owned subsidiary of aerospace products manufacturer Héroux-Devtek Inc. (TSX:HRX), signed a memorandum of agreement (MOA) with The Boeing Company to supply complete landing gear systems for the Boeing 777 and 777X, contingent on launch of the 777X program.
Under the terms of the MOA, 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, as well as manufacturing parts for Boeing to sell in the aftermarket.
A multi-year contract is expected to be signed before the end of calendar 2013. Under the expected multi-year contract, deliveries would begin in early calendar 2017, with an option to extend the contract through 2028.
"This MOA is a landmark achievement for Héroux-Devtek, as the long-term contract with Boeing would represent the largest contract ever awarded to our landing gear operations," says Gilles Labbé, president and chief executive officer of Héroux-Devtek. "Our expanded content on a leading large commercial aircraft program significantly enhances Héroux-Devtek's reputation and competitive position in the aerospace industry. It also provides a solid foundation we can leverage to ensure the long-term growth and sustainability of our operations, as we step up our presence in the global supply chain."
HDI Landing Gear USA Inc. "presented us with the best offer in terms of technical capability, cost, and collaboration," says Kent Fisher, vice president and general manager, Boeing Commercial Airplanes Supplier Management.
The Boeing 777 twin-engine, long-haul airplane has gained 1,460 orders for 777s from 66 global customers to date.
A significant factor that was also considered by Boeing in executing this MOA 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.
Héroux-Devtek Inc. (TSX:HRX) is a Canadian company specializing in the design, development, manufacture, and repair and overhaul of landing gear systems and components for the aerospace market. The corporation supplies the commercial and military sectors of the aerospace market with new landing gear systems and components, as well as aftermarket products and services. The Corporation also manufactures electronic enclosures, heat exchangers, and cabinets for suppliers of airborne radar, electrooptic systems, and aircraft controls through its Magtron operations.