"Comprehensive capital investment plan" undertaken as company gets set to build 777, 777x assemblies
LONGUEUIL, Que.—Canadian landing gear manufacturer Heroux-Devtek Inc. is planning to invest $90 million in its facilities in preparation for work on Boeing Co.’s 777 and 777x aircraft programs.
Unveiled as part of a “comprehensive capital investment plan,” the Quebec-based company said the $90 million it plans to invest is directly related to a contract it netted with Boeing in December 2013 to build landing gear assemblies through its HDI Landing Gear USA Inc. subsidiary for the long-haul aircraft.
“Heroux-Devtek is eager to begin executing the largest landing gear contract in its history and this exhaustive plan brings us another step closer to its achievement,” company president and CEO Gilles Labbé said in a release.
The plan will see the company expand its “existing facility network,” as well as spend on new machinery and equipment for component manufacturing and system assembly over the next two years.
According to Heroux-Devtek, the investment is in addition to the roughly $30 million it plans to spend on regular maintenance over the same two-year period.
As part of the deal with Boeing, HDI will supply complete landing gear systems, including the main and nose landing gear, and the nose landing gear drag strut, for the 777 and 777x programs.
The deal also includes the manufacturing of parts for Chicago-based Boeing to sell in the aftermarket.
Deliveries are scheduled to begin in early 2017.
Heroux-Devtek operates a pair of Ohio plants under the HDI banner.
Last year the company said it was considering a return to Mexico to build the landing gear for Boeing.
The company left the country in 2012 following the sale of its aerostructure and industrial products division to Precision Castparts Corp.