TORONTO, April 3, 2017 /CNW/ - Magellan Aerospace
("Magellan") announced today the sale of the land and building of
its Mississauga facility on
Friday, March 31st, 2017. The
sale will generate net cash proceeds of approximately $32.7 million.
Magellan will lease a new facility that will be constructed by
the buyer on the existing site. The facility rationalization is
being driven by the need to improve Magellan's manufacturing
efficiencies, operational performance, profit margins and cash
flow.
Commenting on the rationalization, Magellan's Chief
Executive Officer, Phillip Underwood stated, "Magellan's
customers expect and demand that we continue to reduce costs and
improve efficiency to remain competitive. The decision for a
facility rationalization allows for reduced cost and increased
overall Magellan manufacturing efficiency, while simultaneously
preserving our manufacturing capacity for the future."
Through careful planning and monitoring Magellan will minimize
any disruption our customers may experience. The move to the
newly constructed facility is expected to be completed and
operational in the early part of 2019.
About Magellan Aerospace
Magellan Aerospace is a global aerospace company that provides
complex assemblies and systems solutions to aircraft and engine
manufacturers, and defence and space agencies worldwide. Magellan
designs, engineers, and manufactures aeroengine and aerostructure
assemblies and components for aerospace markets, advanced products
for military and space markets, industrial power generation, and
specialty products. Magellan is a public company whose shares trade
on the Toronto Stock Exchange (TSX: MAL), with operating units
throughout Canada, the United States, the United Kingdom, India, and Poland.
Forward Looking Statements
Some of the statements in this press release may be
forward-looking statements or statements of future expectations
based on currently available information. When used herein, words
such as "expect", "anticipate", "estimate", "may", "will",
"should", "intend", "believe", and similar expressions, are
intended to identify forward-looking statements. Forward-looking
statements are based on estimates and assumptions made by the
Corporation in light of its experience and its perception of
historical trends, current conditions and expected future
developments, as well as other factors that the Corporation
believes are appropriate in the circumstances. Many factors could
cause the Corporation's actual results, performance or achievements
to differ materially from those expressed or implied by the
forward-looking statements, including those described in the "Risk
Factors" section of the Corporation's Annual Information Form
(copies of which filings may be obtained at www.sedar.com). These
factors should be considered carefully, and readers should not
place undue reliance on the Corporation's forward-looking
statements. The Corporation has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Magellan Aerospace Corporation
