Mexico Destination for Aero OEMs

Two major aviation companies--Bombardier and the SAFRAN Group's Messier Services--announced plans to build facilities in Mexico. Bombardier announced in late October that it will spend about $200 million during the next seven years to build a factory in Quer�taro, Mexico. The factory will initially be used to manufacture wiring harnesses then later will add structural parts, which are currently made by vendors. Bombardier expects to employ 300 people at the Mexico facility by the end of 2006 and 600 by the end of 2007.

The reason for building the Quer�taro factory is to reduce costs, according to a Bombardier statement, and "reduce our reliance on third parties for structural aircraft components." Bombardier is designing the new facility so that it could be used in the future as a final-assembly plant for new airplanes "as new markets emerge."

Messier Services is also building a facility in Quer�taro, but this one is for landing gear and hydraulic equipment maintenance, repair, and overhaul. Messier Services is moving its landing gear MRO business from Sterling, Virginia to a new 100,000-square foot building in Quer�taro. The Mexico facility should be operational by January 1, 2007.

During the transition to Mexico, Messier Services will maintain customer service teams at Sterling and provide some MRO services there, including hydraulic services and CRJ and P-180 Avanti landing gear overhaul. Other landing gear types will be sent to Messier Services narrow-and widebody service centers in Europe. After the transition to Mexico, Messier Services sales, customer service, engineering, and quality assurance personnel will continue working from the Sterling offices. Messier-Dowty and Messier-Bugatti customer support teams will also remain in Sterling.

Mechanics at the Quer�taro plant will be trained in other Messier Services facilities, and a transition team from Sterling will spend time in Mexico to help with training as well.