Latécoère Acquires Bombardier’s Business in QueretaroBy Sofía Hanna | Mon, 03/01/2021 - 13:55
Latécoère, an aeronautical company based in the French city of Toulouse, announced on February 16 it had completed the acquisition of Bombardier’s Electrical Wiring and Interconnection Systems (EWIS) business in Queretaro, Mexico. This agreement expands to also having a long-term supply agreement, where Latécoère will continue providing Bombardier. The acquisition’s value comes close to US$ 45 million, without measuring the benefits that could come in the long term.
According to Aerospace Technologies, Bombardier’s site in Queretaro manufactured US$ 60 million in harnesses and sub-assemblies needed in the production of electrical wiring interconnection systems (EWIS). This represents a strategic move for Latécoère because it will boost its orders and will allow for expansion in its customer portfolio.
“With this transaction, Latécoère strengthens its industrial presence internationally and increases its proximity to its customers. It also signals our continued participation in the global consolidation of the aerospace industry,” said Latécoère CEO Philip Swash wrote on an official release. “The Bombardier team looks forward to working with Latécoère toward a seamless integration as we continue to build on the successes of both our companies,” added Bombardier Operational Executive Vice President Paul Sislian.
This acquisition will not affect Bombardier’s remaining operations in Querétaro. “It will continue to produce major structures for Bombardier aircraft such as the rear fuselage of the Global family of business jets – including the company’s flagship Global 7500 aircraft, which is the most complex aircraft component manufactured in Mexico,” stated the release.
Queretaro has been one of the growing Mexican aerospace hubs, being the fourth-biggest contributor to Mexico’s industry. After the pandemic, Queretaro molded to adapt to the industry’s needs and focused on reconverting existing companies to address new challenges, as previously mentioned by MBN. Still, Daniel Hernández, Managing Director of the Queretaro Automotive Cluster, told MBN that there is a dire need for investments to arrive for the state to develop more initiatives and products. Felipe Sandoval, President of FEMIA, also mentioned in an MBN interview that major manufacturers are shifting their focus from a global supply chain to regional blocks. “However, for Mexico to really take advantage of the opportunities regionalization can create, the industry must transform to reach international standards.”