Bombardier may shift production of Dash 8 Q400 components from Japan to other Asian states in a cost-cutting move that could also help Mitsubishi Heavy Industries (MHI) free capacity for the Boeing 7E7.
Industry sources say MHI, supported by Bombardier, has launched a feasibility study to determine if some or all of its Q400 work can be offloaded to lower-cost manufacturers in China, Indonesia and Taiwan. Shifting production from Japan would cut costs and free capacity for larger, more profitable MHI projects. MHI has already decided not to join Bombardier's CSeries programme so it can focus on 7E7 wing work.
MHI supplies the Q400's mid-fuselage, vertical fin, horizontal stabiliser, elevator, rudder and door. It is prepared to retain responsibility for these parts if they are sub-sourced unless Bombardier decides to sign new deals directly with the new team of suppliers.
Sources say Indonesian Aerospace (IAe) has already submitted a proposal to supply Q400 fuselage subassemblies and is expecting a decision in the first quarter of 2005. This contract would be awarded directly by Bombardier and could result in work being shifted from Canada and Japan to Indonesia. IAe, Taiwan's Aerospace Industrial Development Corporation and China Aviation Industries are seeking Q400 work as MHI subcontractors.
A source says that other Bombardier work by MHI may be offloaded later. "If they show good performance then it could go to the next project," he says.
BRENDAN SOBIE / SINGAPORE
Source: Flight International
