Reduced defence spending and the recent government shutdown in the U.S. are forcing Canadian aerospace company Héroux-Devtek Inc. to lay off 40 employees at its main Montreal-area facility.
The manufacturer of landing gear systems and components said on Monday it has no choice but to temporarily lay off 40 people at its Longueuil, Que., plant because of a "significant slowdown in landing gear repair and overhaul activities for the United States Air Force (USAF). The combined effect of reduced base defense budget funding, the continued sequestration situation and the recent U.S. government shutdown last October negatively impacted the USAF available budget for various programs."
The company said it is in "close contact" with the USAF and will advise workers "as soon as the USAF provides an updated plan for its various programs."
Héroux-Devtek is the third-largest landing-gear maker in the world. It is a supplier to both the military and commercial markets.
About 70 per cent of its sales are outside Canada, mostly in the U.S.