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Large Contract May Prompt Aerospace Firm to Manufacture in Mexico Again

Montreal-based aerospace parts producer, Heroux-Devtek, recently landed a significant, long-term contract with U.S.-based OEM, Boeing, for the provision of landing gear assemblies for the latter’s 777 and 777X aircraft.   As a result, the company may decide to engage in aerospace manufacturing in Mexico once again.

Although Heroux-Devtek officials are analyzing location questions, there is an initial belief that work on the Boeing contract will be spread between plants that the company has in place in Canada and the United States, but may also be comprised of a Mexican component.

Heroux Devtek, which employs a total of 1,050 individuals, is also contemplating the possibility that it will manufacture in Mexico again. The company exited the country in 2012, when it sold its industrial products division to the Portland, Oregon-based Precision Castparts Corporation, a New York Stock Exchange traded company. The plant that changed ownership between to two aerospace parts manufacturers is located in one of Mexico’s leading aerospace production cities, Queretaro.

The contract with Boeing, which was signed by a U.S. subsidiary of Heroux Devtek, is for the provision of full landing gear systems. Aftermarket products that Boeing will sell in the future compose a part of the contract, as well. The Canadian-based aerospace supplier is projected to begin to make deliveries starting in 2017. There is a possibility that the contract will run through 2028.

In addition to doing some of the work in Canada and the U.S., the leadership of Heroux Devtek is contemplating the possibility of establishing a new plant to manufacture in Mexico to contribute to the filling of Boeing’s orders. The contract is the largest one ever won by the company’s landing gear production division.

Heroux Devtek’s leadership has stated that incentives that may be provided be federal, state and local entities may be heavily considered in the decision making process related to the Mexican site selection process.

The full original article can be read at the Waterloo Record.

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