Héroux-Devtek Announces Restructuring Initiatives in Light of Ongoing COVID-19 Pandemic

From Héroux-Devtek Inc.

LONGUEUIL, QC, May 5, 2020 /CNW Telbec/ – Héroux-Devtek Inc. (TSX: HRX) (“Héroux-Devtek” or the “Corporation”), a leading international manufacturer of aerospace products and the world’s third-largest landing gear manufacturer, today announced restructuring initiatives driven by lower production rates in the commercial aerospace market due to the ongoing pandemic.

These initiatives will result in a 10% reduction of the Company’s total workforce, or approximately 225 employees, of which 125 are located in Quebec. As a result, the Company will be closing its plant that was formerly known as Alta Precision.

“While our defense activities have been generally insulated from the global pandemic, we are seeing lower demand for our commercial products. 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,” said Martin Brassard, President and CEO.

These initiatives, which will be completed over the remainder of the fiscal year, will result in a non-recurring charge totalling approximately $12.0 million before taxes accounted for in the first quarter of Fiscal 2021.