Bombardier repatriates the manufacture of aeronautical wiring to Mexico by buying activities sold to the French group Latécoère a little more than two years ago when the aircraft manufacturer multiplied the sales of assets in order to clean up its finances.
The transaction was not publicly announced by the Quebec multinational, but its employees were made aware through an internal memo, which The Press has been able to consult, and which is signed by the executive vice-president of manufacturing and information technology, David Murray.
“This acquisition is part of our ambition and growth strategy for our Querétaro sites, which will allow Bombardier to maximize the use of its manufacturing footprint, gain expertise in the region and create new job opportunities,” he wrote.
Financial details of the transaction were not disclosed. Bombardier had pocketed when it sold its wiring business. At the time of announcing the sale, the annual revenue generated by the site in Mexico was estimated at around US$80 million.
An electrical wiring interconnection system – called “electrical wiring interconnection system” in English – is essential to the proper functioning of an aircraft. It ensures the transmission of energy, data and other signals.
“We will strengthen our presence in Mexico’s thriving aviation industry,” Murray said in his memo to workers.
In Mexico, the private jet manufacturer already operates a factory responsible for manufacturing the rear fuselage of the Global 7500 and Global 8000 aircraft. These aircraft are assembled in the Toronto area. Their interior finishing is done in Montreal.
Latécoère, which specializes in aerostructure activities, electrical wiring and engineering services, did not explain why it decided to divest itself of the wiring business so quickly. According to a financial communication from the group, there seem to be financial issues, since the company says it is in talks with its lenders, in particular, in order to “adapt its capital structure” concerning loans granted by the French State.
According to the most recent financial report of the multinational based in Toulouse, it had posted a net loss of 27 million euros (around 40 million CAN) after the first six months of its financial year in 2022.
Also present in Quebec, Latécoère counts giants such as Airbus, Boeing and Bombardier among its customers. As of December 31, it had 4,764 employees in 14 countries.
On the Toronto Stock Exchange on Wednesday afternoon, Bombardier’s Class B stock was trading at $70.47, up 97 cents, or 1.4%. Last year, the aircraft manufacturer carried out a consolidation of shares at a ratio of 25 to 1.
- March 23
- Date on which Bombardier will hold its next Investor Day.