Mitsubishi Heavy Industries (MHI) will acquire Bombardier’s regional jet programme for $550 million.

Mitsubishi Heavy Industries (MHI) will acquire Bombardier’s regional jet programme for $550 million.

Mitsubishi will acquire the maintenance, support, refurbishment, marketing and sales activities for the CRJ Series aircraft, including the related services and support network located in Montréal, Québec, and Toronto, Ontario. Mitsubishi will also acquire Bombardier’s service centres located in Bridgeport, West Virginia, and Tucson, Arizona, as well as the type certificates.

Mitsubishi says the acquisition will complement its existing commercial aircraft business – in particular the development, production, sales and support of the Mitsubishi SpaceJet commercial aircraft family.

“The maintenance and engineering capabilities of the CRJ programme will further enhance critical customer support functions, a strategic business area for MHI in the pursuit of future growth,” a statement said.

Strategic step for Mitsubishi

Seiji Izumisawa, President & CEO of Mitsubishi Heavy Industries Ltd., commented: “As we outlined during the recent Paris Air Show, we are working hard to ensure that we provide new profit potential for airlines and set a new standard for passenger experience. This transaction represents one of the most important steps in our strategic journey to build a strong, global aviation capability. It augments these efforts by securing a world-class and complementary set of aviation-related functions including maintenance, repair and overhaul (MRO), engineering and customer support.”

Izumisawa added: “The CRJ programme has been supported by tremendously talented individuals. In combination with our existing infrastructure and resources in Japan, Canada and elsewhere, we are confident that this represents an effective strategy that will contribute to the future success of the Mitsubishi SpaceJet family. MHI has a decades-long history in Canada, and I hope this transaction will result in the expansion of our presence in the country, and will represent a significant step in our growth strategy.”

Bombardier’s vision for the future

Alain Bellemare, President and Chief Executive Officer, Bombardier Inc., commented: “With our aerospace transformation now behind us, we have a clear path forward and a powerful vision for the future. Our focus is on two strong growth pillars: Bombardier Transportation, our global rail business, and Bombardier Aviation, a world-class business jet franchise with market-defining products and an unmatched customer experience.”

The CRJ production facility in Mirabel, Québec will remain with Bombardier. Bombardier will continue to supply components and spare parts and will assemble the current CRJ backlog on behalf of MHI. CRJ production is expected to conclude in the second half of 2020, following the delivery of the current backlog of aircraft.

The transaction is expected to close during the first half of 2020.

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