Under the terms of the agreement, Héroux-Devtek will fabricate the landing gear for all Chinook aircraft destined to the U.S. Army. Landing gear deliveries are scheduled to begin in the first half of calendar 2014 and will be spread out over a five-year period. Current program expectations call for the delivery of 155 aircraft to the U.S. Army over the contracted period. The contract also includes options, exercisable at Boeing's discretion, to fabricate the landing gear for up to 150 additional aircraft over the same period.
This new long-term contract is the third agreement actively involving Héroux-Devtek on the H-47 program. The first announcement, in September 2009, was in regards to the fabrication, assembly, testing and delivery of the landing gear for H-47F aircraft delivered to customers outside the United States, including the CH-147, as it is known for the Canadian Forces. The second agreement, announced in September 2012, was for a license allowing the Corporation to offer its services to fabricate replacement parts and carry out repair and overhaul services for the landing gear of all Chinook variants.
"Héroux-Devtek is proud to have been selected to carry out this significant mandate which further increases our reach on the H-47 program," said Gilles Labbé, President and CEO of Héroux-Devtek. "This additional contract firmly positions Héroux-Devtek as the leading landing gear supplier on this important and longstanding program. We are delighted that Boeing recognizes our capability to manufacture high-quality, complete landing gear assemblies, while also showing full confidence in our ability to efficiently respond should options be exercised."
The H-47F Chinook is a multi-mission, medium-to-heavy-lift transport helicopter. Its primary mission is to move troops, artillery, ammunition, fuel, water, barrier materials, supplies and equipment on the battlefield. Its secondary missions include medical evacuation, disaster relief, search and rescue, aircraft recovery, fire fighting, parachute drops, heavy construction and civil development. The family of Chinook aircraft has been in U.S. Army service since 1962. In addition, Chinooks are operated or have been selected by nearly 20 international defense forces.
ABOUT HÉROUX-DEVTEK INC.
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 is the third largest landing gear company in the world, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. Approximately 70% of the Corporation's sales are outside Canada, mainly in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; as well as Springfield and Cleveland, Ohio.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Company's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.