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Héroux-Devtek, Boeing ink landing gear pact

A worker assembles landing gear at the Heroux Devtek facility in Quebec.

Héroux-Devtek Inc. has signed a long-term contract with Boeing Co. to supply complete landing gear systems for the Boeing 777 and 777X programs.

It is the largest contract ever awarded to the Longeuil, Que.-based company's landing gear operations.

Total value of the deal was not disclosed.

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Héroux-Devtek previously announced in September that it had signed a memorandum of agreement with Boeing to supply the landing-gear systems.

The landing-gear company also said on Wednesday that it has been notified by UTC Aerospace Systems of the latter's intent to go to arbitration over a non-compete deal between Héroux-Devtek and Goodrich Corp., part of UTC.

The conflict arises from Héroux-Devtek's plans to manufacture pistons in support of a contract with Boeing.

"The corporation disagrees with [UTC's] position and firmly believes that it is acting in conformity with its agreements. Operations are unaffected and continue on a normal basis," Héroux-Devtek said in a news release.

Héroux-Devtek is the world's third largest landing-gear manufacturer, supplying both the civil and military sectors.

It sold two other aerospace divisions – structural components and industrial products – last year to a bigger U.S. rival for about $300-million in order to focus squarely on its landing-gear business.

Under terms of the landing-gear contract with Boeing, Héroux-Devtek subsidiary HDI Landing Gear USA Inc. will supply complete landing gear systems, including the main and nose landing gear, as well as the nose landing gear drag strut.

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The deal also includes making parts for Boeing to sell in the aftermarket.

Deliveries are to begin in early calendar 2017, with an option to extend the contract through 2028.

"The signature of this long-term contract brings Héroux-Devtek one step closer to initiating the execution of the largest contract ever awarded to its landing gear operations," said Héroux-Devtek president and chief executive officer Gilles Labbé.

"We are in the process of finalizing our plan for capital investments required to carry out this mandate."

As at Dec. 9, 2013, the Boeing 777 program has received 1,519 orders from 67 customers, with a backlog of 363 aircraft.

Canada's industrial Regional Benefits (IRB) policy, prime contractors such as Boeing are required to make investments in the Canadian economy as a result of winning defense and security contracts with the federal government.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

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