A major aerospace operation in Mississauga is about to change ownership, with approximately 750 local workers set to become Bombardier employees.<\/p>\n
Bombardier has reached an agreement to acquire the assets of MHI Canada Aerospace Inc., better known as MHICA, from its parent company, Mitsubishi Heavy Industries (MHI).<\/p>\n
The deal is expected to close later this year, subject to regulatory approvals and other closing conditions.<\/p>\n
For Mississauga, the agreement means a long-established aerospace operation near Pearson Airport will become part of Bombardier\u2019s existing manufacturing operation in the city.<\/p>\n
And for the approximately 750 people who work at MHICA, Bombardier says the transition is intended to be business as usual.<\/p>\n
The names can be confusing.<\/p>\n
Mitsubishi Heavy Industries is a major Japanese industrial company with businesses ranging from energy and infrastructure to aerospace and defence.<\/p>\n
MHI Canada Aerospace is its Canadian aerospace operation. The company was incorporated in Ontario in 2006 and has operated in Mississauga for nearly two decades.<\/p>\n
MHICA\u2019s main facility is at 6390 Northwest Drive in the Malton area, where it operates a large manufacturing plant and logistics centre. The company currently lists 725 employees at the location.<\/p>\n
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MHICA is not building complete airplanes.<\/p>\n
Instead, its highly skilled workforce manufactures and assembles major aircraft structures, including wing assemblies and fuselage sections, and performs systems and flight-control installation and testing. Its work has supported Bombardier\u2019s Global and Challenger business aircraft programs.<\/p>\n
Reuters reports the Mississauga facility plays a key role in manufacturing wings for Bombardier\u2019s Global 5500 and Global 6500 private jets.<\/p>\n
In other words, the company Bombardier is buying is already an important part of the process of building Bombardier aircraft.<\/p>\n
Bombardier says the acquisition will bring those manufacturing capabilities in-house and strengthen its control over an important part of its aircraft supply chain.<\/p>\n
The company says it will gain MHICA\u2019s aerostructure manufacturing expertise along with its experienced workforce, giving Bombardier greater manufacturing flexibility and resilience as demand for its aircraft grows.<\/p>\n
\u201cThis agreement represents a key step in Bombardier\u2019s long-term growth strategy,\u201d said David Murray, Bombardier\u2019s executive vice-president of manufacturing and supply chain execution.<\/p>\n
He said the deal will deepen Bombardier\u2019s manufacturing expertise and allow the company to continue developing the local workforce in areas including component manufacturing and whole-aircraft assembly.<\/p>\n
Financial terms of the agreement were not disclosed.<\/p>\n
Bombardier already has a major presence in the city, including its Global Aircraft Assembly Centre near Toronto Pearson Airport.<\/p>\n
The acquisition will effectively expand Bombardier\u2019s manufacturing footprint in Mississauga by bringing a major supplier operation and its hundreds of skilled employees directly into the company.<\/p>\n
MHICA\u2019s roots in the city go back to 2007, when it acquired a 90,000-square-foot facility to work on Bombardier\u2019s Global business jet program.<\/p>\n
As its operations expanded, the company moved into a purpose-built 270,000-square-foot facility in Malton in 2012. It later added another facility to support its logistics and manufacturing operations.<\/p>\n
MHI says it will work with Bombardier to make the transition as smooth as possible and provide support for an interim period after the transaction closes.<\/p>\n
The goal, both companies say, is to avoid disruption to aircraft programs and maintain continuity for employees and operations in Mississauga.<\/p>\n
For MHI, the sale does not mean the company is leaving Canada. It says it will continue to have a significant Canadian presence through its other business activities. For Bombardier, meanwhile, the deal means more of the aircraft-building process will be controlled directly by the company.<\/p>\n
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