Bombardier Aerospace
TSX : BBD.MV.A
TSX : BBD.SV.B

Bombardier Aerospace

October 26, 2005 14:29 ET

Bombardier Aerospace Establishes Manufacturing Capability in Queretaro, Mexico

QUERETARO, MEXICO--(CCNMatthews - Oct. 26, 2005) - Bombardier Aerospace today announced it will establish a world-class manufacturing facility in Queretaro, Mexico to complement its existing manufacturing sites. The company will be investing approximately $200 million US in equipment, buildings and start-up costs over the next seven years.

Scheduled to be implemented in phases starting in May 2006, capabilities at Bombardier Aerospace's new Mexican facility will initially include the manufacture and assembly of wire harnesses for Bombardier aircraft. Bombardier Aerospace is in the process of evaluating the impact of the transfer of these activities on its workforce.

Later in 2006, the new facility is scheduled to start manufacturing major structural aircraft components currently being built by Bombardier Aerospace suppliers. Details on the type of components to be manufactured will be finalized in the coming months. By the end of 2006, employment at the Queretaro facility is expected to reach 300 skilled and trained workers and increase to 600 by the end of 2007.

"This facility will allow us to develop a low cost manufacturing capacity that will reduce our reliance on third parties for structural aircraft components and contribute to the reduction of our operating costs and to increased profitability, " said Pierre Beaudoin, President and Chief Operating Officer, Bombardier Aerospace.

"Bombardier Aerospace is committed to its long-term relationship with the Mexican Federal government and the government of the State of Queretaro to develop a first-class aerospace industry in Mexico. By establishing its own fully integrated, world-class manufacturing facility in Queretaro, Bombardier Aerospace will serve as a catalyst for the aerospace industry in Mexico through the sharing of knowledge and of leading-edge manufacturing processes," added Mr. Beaudoin.

In keeping with its long-term commitment, Bombardier Aerospace will build its Queretaro facility so that it has the capability, in the future, for final aircraft assembly as new markets emerge. The implementation of this capability will be carried out in parallel to the Mexican Federal Government's establishment of the essential pillars to develop a substantive aerospace industry. These pillars include the harmonization of Mexican aviation regulations with the international community, adequate aerospace education systems and suitable government programs catering to the support of aerospace research and development, among others.

Queretaro, situated North of Mexico City, offers quality industrial and educational infrastructures, a skilled population and dynamic economic development policies. Its modern airport will provide Bombardier Aerospace, its suppliers and other future members of the new Mexican aerospace cluster the best potential for growth and synergies. In parallel to the establishment of its new facility, Bombardier Aerospace also plans to develop a local supplier base in support of its Mexican operations and its other facilities.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005, were $15.8 billion US and its shares are traded on the Toronto Stock Exchange (BBD). News and information are available at www.bombardier.com.

Contact Information