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Bombardier inked an agreement with Mitsubishi Heavy Industries (MHI) to acquire the assets of MHI Canada Aerospace Inc. (MHICA), located in Mississauga, Ontario, the companies announced on September 1. Terms of the transaction, which is subject to regulatory approvals and customary conditions, were not disclosed.
Anticipated to close later this year, the transaction will expand Bombardier’s aerostructures capability, adding a team of 750 employees and bringing in house component work for the Global 5500/6500 and Challenger 3500 programs. Operating a 270,000-sq-ft manufacturing facility and a 70,000-sq-ft logistics center, MHICA handles aerostructures and other components such as wing assemblies, fuselage sections, and flight control installations.
“This agreement represents a key step in Bombardier's long-term growth strategy, strengthening critical capabilities, enhancing operational resilience, and supporting the company's flexibility to meet growing customer demand,” said David Murray, executive v-p of manufacturing, supply-chain execution, and Bombardier operational excellence systems. “MHI Canada Aerospace has built a highly respected operation with a talented and experienced team. With this acquisition, we are deepening our core manufacturing expertise as well as our commitment to proactively develop the local workforce through multiple streams in component manufacturing and whole aircraft assembly.”
Plans call for Bombardier to work with MHI to ensure an orderly transition and continuity of aircraft programs. This support is anticipated to continue for an interim period following closing.
“We are proud of what our employees have achieved at MHICA and of the important contributions they have made and will continue to make to these aircraft programs,” said Hiroyuki Koguchi, executive v-p, head of commercial aviation systems at MHI. “This agreement ensures a bright future for our employees, whose skill, dedication and expertise have been central to MHICA’s success.”
The transaction is in line with its approach of investing in strategic capabilities to support long-term priorities, strengthening its manufacturing footprint and supply chain, added Sandra Hodgkinson, senior v-p of strategy and M&A at Bombardier.