Canadian Manufacturing

Heroux-Devtek to lay off 55 Quebec workers due to drop in demand

Blamed cuts on decline in demand for military products in U.S.; made temporary layoffs in November



LONGUEUIL, Que.—Aerospace products manufacturer Héroux-Devtek Inc. said it will make permanent layoffs at one of its Quebec plants due to “substantial demand reduction” in the United States.

According to the Quebec-based manufacturer, it will cut 55 staff from the roster at a plant in the Montreal suburb of Longueuil, Que., leaving the facility with 15 employees.

The layoffs comes due to a decline in demand for military products in the U.S.

“The transformations affecting our industry require great flexibility and rapid adaptability, and Héroux-Devtek must be proactive to remain competitive,” president and chief executive Gilles Labbé said in a statement about the job cuts.

“We regret the impact for the affected employees and their families, but the steep decline in U.S.-based customer demand for military aftermarket products called for adjustments in our manufacturing base.”

The layoffs will begin in April and run over a 12-month period.

Héroux-Devtek expects to take a charge of roughly $5-million, which will be on the books in the fourth quarter of the 2014 fiscal year and first half of 2015.

The company blamed the U.S. government shutdown for about 40 temporary layoffs at the plant in November.

Héroux-Devtek said it will shift its focus to its main plant, also located in Longueuil, which will have a combined workforce of approximately 350 employees.

With $40-million in investments made there since 2007, the plant This facility specializes in repair and overhaul, surface treatment and assembly of medium- to large-size landing gear systems.

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