Rutter Inc., one of the province’s most prominent technology companies, is set to sell a division devoted to manufacturing components for military uses, including parts required for land vehicles.
“It’s not a big piece of our business,” said president and CEO Fraser Edison, who added the specialized manufacturing work has been declining for four or five years.
That decline coincided with with a change to Canada’s involvement in Iraq and Afghanistan wars.
Rutter has also been dealing with challenges in importing materials and exporting manufactured components to larger manufacturing operations elsewhere.
“We knew that it would not last forever,” he said, explaining a buyer approached the company.
Edison said about 35 employees will be directly affected by the decision. He said it is possible some will find a place in other arms of the company, but he expects layoffs.
“The business will be sold at the end of September, but we will still have to complete certain contracts out to November, December,” he said.