Several potential sites in the USA, including Kansas City, Missouri, are being explored by Bombardier for CSeries manufacturing work, but the Canadian airframer continues to see Mirabel, Quebec as the "preferred site" for final assembly.
Considering the strength of the Canadian dollar, Bombardier says it is "exploring potential manufacturing sites in the USA, including Missouri". It adds: "Based on our discussions with Missouri to date we expect their proposal to be a serious option for us to consider."
Missouri state officials are reportedly trying to attract Bombardier with a strategy that calls for a series of tax credits. Bombardier says other states have also expressed an interest in participating as a risk-sharing partner in the CSeries, "but Missouri was at a stage in their process where they had to introduce legislation and make a public announcement".
The CSeries wing, horizontal and vertical stabilisers, and nacelles were originally slated to be built in Bombardier's Belfast, UK plant and the cockpit in St Laurent, Quebec. Final assembly was to take place in Mirabel. However, in February Bombardier's executives confirmed that US sites were being evaluated in light of the continued challenges posed by the exchange rate of the Canadian dollar.
They said total development costs and capital investment for the CSeries will total $3.2 billion, and will be split with the airframer, government and suppliers. The CSeries fuselage will continue to be manufactured by China Aviation Industries I subsidiary Shenyang Aircraft.
"Because our products are sold in US currency, the natural hedging derived from having a manufacturing facility in the USA means that our business is less affected by fluctuations in the US dollar," says Bombardier. "At our current revenue levels, an annual increase of the US dollar by one cent means a loss of over $20 million in revenue."
Source: Flight International
