Bombardier Aerospace to Consolidate Learjet and
Challenger Series Business Aircraft Production at Two
Manufacturing Sites
MONTREAL, QUEBEC--OCTOBER 16, 2003 - 16:45 ET
To result in net annual savings of $33 million Cdn ($25 million
US)
Will impact employment levels in Tucson and Wichita
Bombardier Aerospace has announced plans to create integrated
manufacturing centres for its Bombardier Learjet(i) and
Challenger(i) Series business jets at its Wichita, Kansas and
Dorval, Quebec locations respectively.
The new business aircraft manufacturing centres will regroup
business aircraft final line activities and interior completions
at one site. By combining these two activities in one location,
Bombardier Aerospace will significantly reduce its production
cycle times and inventory levels while improving its
competitiveness. Production of Bombardier regional aircraft
currently follows the integrated manufacturing centre model.
The creation of the two business aircraft integrated
manufacturing centres will result in total net savings of $33
million Cdn annually ($25 million US) starting with the first
full year of operation. The integrated manufacturing centres will
be fully operational by the first quarter of 2005.
/T/
Additional benefits of the integrated manufacturing centres include:
- A centralized expertise around the same product lines, which will
enable Bombardier Aerospace to be more efficient in its
manufacturing activities and to better focus and respond to its
customers' needs with a more streamlined and flexible
organizational structure.
- The proximity to its supplier base, which will facilitate
suppliers' 'just in time' integration into production activities
and help achieve the full potential of cost reduction initiatives
for the acquisition of aircraft components.
- A reduction in the number of sites required for production
activities, which will make available manufacturing space for other
business units.
Impact on Employment Levels
The creation of these integrated manufacturing centres will result in
the relocation of manufacturing activities and a reduction in
employment levels. Estimated severance costs related to the reduction
in employment levels will be approximately $8 million US.
- In Tucson, a reduction of approximately 800 jobs over the next 15
to 18 months will take place as a result of the transfer of
Bombardier Learjet interior completions to Wichita and Bombardier
Challenger interior completions to Dorval. Some of the employees
affected will have the opportunity to relocate to fill jobs in
Wichita and Montreal.
In addition, Tucson has been selected as the location for the
western Bombardier Regional Aircraft Service Centre, which will
result in the creation of approximately 300 new jobs over a three-
year period. The Bombardier Business Aviation Services Centre will
continue to operate at the site, adjacent to Tucson International
Airport.
- In Wichita, there will be an overall workforce reduction of
approximately 350 positions over the next 12 to 15 months. The
increase in the number of employees due to the transfer of
Bombardier Learjet completions from Tucson to Wichita will be
offset by a reduction in the workforce as the assembly process of
the Bombardier Challenger 300 is moved to Dorval.
- In Dorval, there will be no immediate increase in the level of
employment resulting from the transfer of the Bombardier Challenger
300 assembly line from Wichita and Bombardier Challenger 300 and
Challenger 604 interior completions from Tucson.
The table on page three summarizes the changes to site manufacturing
activities as well as their impact on employment levels:
Bombardier Aerospace
Current and Future Site Manufacturing Activities
---------------------------------------------------------------------
Current Operations Future Operations Workforce
Reduction
---------------------------------------------------------------------
Tucson
---------------------------------------------------------------------
Learjet 40 completions Business Aviation 800 jobs
Learjet 45 completions Services Center over the next
Learjet 60 completions Western Bombardier 15 to 18
Challenger 300 completions Regional Aircraft months
Challenger 604 completions Service Centre
Business Aviation Services
Center
---------------------------------------------------------------------
Wichita
---------------------------------------------------------------------
Learjet 40/45 final Learjet 40/45 350 jobs
assembly final assembly over the
Learjet 60 final and completions next 12 to
assembly Learjet 60 final 15 months
Challenger 300 final assembly and
assembly completions
Business Aviation Business Aviation
Services Center Services Center
---------------------------------------------------------------------
Dorval
---------------------------------------------------------------------
Challenger 604 final Challenger 300/604
assembly final assembly Nil
Challenger 800 final and completions
assembly Challenger 800
Global Express/Global final assembly
5000 completions Global Express/Global
CRJ200 final assembly 5000 completions
CRJ200 final assembly
---------------------------------------------------------------------
Toronto
---------------------------------------------------------------------
Q100/200/300 final
assembly No change Nil
Q400 final assembly
Global Express/Global
5000 final assembly
---------------------------------------------------------------------
Mirabel
---------------------------------------------------------------------
CRJ700 final assembly
CRJ900 final assembly No change Nil
---------------------------------------------------------------------
Belfast
---------------------------------------------------------------------
CRJ200 forward and
central fuselage,
horizontal stabilizer,
wing components, engine
nacelles
CRJ700 forward and central No change Nil
fuselage, engine nacelles,
wing components
CRJ900 complete fuselage,
engine nacelles, wing
components
Q400 wing mounted flight
components
Learjet 40/45 complete
fuselage
Challenger 300 centre
fuselage
Challenger 604 horizontal
stabilizer, centre
fuselage, engine
nacelles
Global Express and
Global 5000 forward
fuselage, horizontal
stabilizer, tailcone,
engine nacelles
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October 16, 2003
/T/
"An integrated assembly and completion process is a significant
competitive advantage in our industry," said Pierre Beaudoin,
president and chief operating officer, Bombardier Aerospace.
"These new integrated manufacturing centres will ensure our
long-term success by maximizing synergies in our business
aircraft production operations, resulting in significant cost
savings and increased efficiency."
"We are dedicated to industry leadership in the regional and
business aircraft markets. This integrated manufacturing strategy
will simplify our processes and make it simpler for our customers
to do business with us," he added.
Bombardier Aerospace, a unit of Bombardier Inc., is a world
leader in the design and manufacture of innovative aviation
products and provides services for the regional, business and
amphibious aircraft markets. It also offers Bombardier Flexjet(i)
and Bombardier Skyjet(i) business aircraft programs, technical
services, and aircraft maintenance and pilot training for
business, regional airline and military customers.
Bombardier Inc., a diversified manufacturing and services
company, is a world-leading manufacturer of business jets,
regional aircraft, rail transportation equipment and motorized
recreational products. It also provides financial services and
asset management in business areas aligned with its core
expertise. Headquartered in Montreal, Canada, the Corporation has
a workforce of some 75,000 people and manufacturing facilities in
25 countries throughout the Americas, Europe and Asia-Pacific.
Its revenues for the fiscal year ended Jan. 31, 2003 stood at
$23.7 billion Cdn. Bombardier shares are traded on the Toronto,
Brussels and Frankfurt stock exchanges (BBD, BOM and BBDd.F).
(i) Trademarks of Bombardier Inc. or its subsidiaries. |
