Bombardier Establishing Mexican Manufacturing Site

 - February 9, 2007, 9:25 AM

Bombardier Aerospace yesterday revealed it will build a component manufacturing facility in Querétaro, Mexico, to begin operations next May, initially producing wire harnesses but eventually having the capability for "final aircraft assembly." Later next year the facility is scheduled to start manufacturing "major structural aircraft components" currently being built by Asian suppliers. Bombardier declined to immediately disclose the exact components to be built in Mexico, saying those details will be finalized in the coming months. "This facility will allow us to develop a low-cost manufacturing capacity, and contribute to the reduction of our operating costs and to increased profitability," said Bombardier Aerospace president and CEO Pierre Beaudoin. The company also said it is in the process of "evaluating the impact of the transfer of these activities on its workforce." Nearly 700 employees–mostly in Canada–will be affected. In September, Cessna announced plans to build a company-owned facility in Mexico, and in 2003 Raytheon moved wire harness production to a supplier in Mexico.