Bombardier Aerospace plans to invest $200 million over seven years from May in a new facility in Queretaro, Mexico that could eventually be used as a final-assembly plant.

“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,” says president and chief operating officer Pierre Beaudoin.

The factory will initially be used to manufacture and assemble wire harnesses for corporate and regional aircraft, expanding in 2006 to include “major structural components” that are now built by Bombardier suppliers.

The site will employ 300 skilled and trained workers by the end of 2006, rising to 600 a year later.

Bombardier will also develop a local supplier base to support its Mexican operations.

Source: Flight International