MONTREAL – Bombardier Inc. has announced its decision to acquire Mitsubishi’s primary aerospace factory located in Canada. This strategic move involves bringing in-house an operation that was previously managed externally.
The Montreal-based manufacturer of business jets disclosed that the acquisition of MHI Canada Aerospace Inc. facilities in Mississauga, Ontario, will result in approximately 750 Mitsubishi employees joining Bombardier’s existing workforce of around 18,000 individuals.
This deal includes MHI’s 270,000 square-foot plant, which has been instrumental in handling wing assembly, fuselage, and flight control installations for various Bombardier aircraft models. By bringing these operations under Bombardier’s umbrella, the company aims to improve efficiency and control over its production processes.
David Murray, Bombardier's executive vice-president of manufacturing, commented that this agreement is a significant milestone in the company’s long-term growth strategy, particularly as demand for business jets continues to rise. Murray emphasized the importance of the acquisition in strengthening the company’s operational capabilities amid an increasing market appetite.
Although Bombardier did not disclose the financial details regarding the purchase of the factory, it is noted that the facility is strategically positioned on the outskirts of Toronto’s Pearson International Airport, further enhancing the company’s logistical advantages.
The announcement of this acquisition comes just a month after Bombardier’s CEO, Éric Martel, indicated that the manufacturer is beginning to explore potential acquisitions in the aircraft services and defense sectors. This strategy aligns with the growing demand for its business jets, as the company seeks to shed a once-burdensome debt load.
It is important to note that the acquisition deal is subject to regulatory approvals and is expected to be finalized later this year. This marks a proactive step by Bombardier toward reinforcing its market position and operational capacity in the aerospace sector.
Companies relevant to this story include Bombardier Inc., listed on the Toronto Stock Exchange under the ticker TSX:BBD.B.
