In a significant move to expand its production capabilities, Canadian aerospace giant Bombardier Inc. has unveiled plans to construct a new manufacturing centre near its existing facilities in the Montreal area. The company will invest $100 million in the project, which is a core part of its strategy to meet rising global demand for its business aircraft.
A Strategic Expansion for Growing Demand
The new plant, spanning 126,000 square feet, will be built in Dorval, Quebec, adjacent to Bombardier's current operations. The facility is scheduled to become operational in 2027. This expansion is directly tied to the company's need to enhance productivity and output as orders for its Challenger and Global series jets continue to climb.
"This project is part of the company's long-term strategy to boost productivity as it responds to growing demand for its business aircraft," Bombardier stated in an official news release.
Government Backing and Economic Impact
The substantial investment is receiving financial support from the Quebec government. Investissement Québec, the province's financial arm, is providing a $35 million loan to facilitate the project. This partnership underscores the importance of the aerospace sector to Quebec's industrial and economic landscape.
While Bombardier has not detailed the specific manufacturing processes slated for the new building, its Montreal-area plants are crucial. They are where the company manufactures its Challenger jets and completes the interior outfitting for its larger Global aircraft models.
Broader Context: Major Orders and Defence Talks
The capacity expansion comes at a time of robust activity for Bombardier's business aviation division. Last year, the company secured a major order from Bond Aviation Holdings, a new fractional-ownership jet company backed by investment firm KKR & Co. The deal, valued at US$1.7 billion, is for 50 aircraft with an option for an additional 70.
Beyond commercial aviation, Bombardier is also involved in strategic defence discussions. The company is in talks with Sweden's Saab AB about the potential to build Gripen fighter jets in Canada, although the Canadian government has not yet committed to such a program. The two firms already collaborate on the GlobalEye early warning surveillance aircraft, which uses Bombardier's Global 6500 airframe assembled in Canada before being sent to Sweden for specialized systems installation.
This new factory investment signals Bombardier's confidence in the sustained growth of the business jet market and reinforces Montreal's position as a global hub for aerospace manufacturing.