Bombardier Inc., the world's third- largest commercial aircraft maker, said
it gave a contract to China's Shenyang Aircraft Corp. to make parts for its Q400
planes, as it moves some production to low cost countries.
The companies signed an agreement covering fuselage sections at the
Farnborough International Airshow in the U.K. yesterday, according to a short
statement posted on Montreal-based Bombardier's Web site, which didn't give any
further details. Li Changsan, a spokesman for Shenyang Aircraft, a unit of China
Aviation Industry Corp. I, declined to comment today.
Bombardier is moving production to low cost countries, as the strength of the
Canadian dollar has hurt its margins, the company's aerospace chief, Pierre
Beaudoin, said on July 17. Shenyang already makes parts for other planes for
Bombardier, which is also building a US$200 million plant in Mexico.
Shenyang Aircraft will start supplying fuselage sections for the Q400
turboprop in 2008, Flight International said on its Web site, citing President
Li Fangyong.
The Chinese company is replacing Mitsubishi Heavy Industries Ltd., which
ended production because of capacity constraints, Flight said, citing Bombardier
Vice President Jean Seguin. Tokyo- based Mitsubishi Heavy is making wings and
fuselage sections for Boeing Co.'s 787 aircraft.
Shenyang Aircraft and Bombardier had also agreed a partnership for the
CSeries, the planemaker's proposed regional jet, which was shelved in January,
the report said. Bombardier expects the partnership to be revived if the plane
goes into production, the report said, citing Beaudoin.
Shenyang Aircraft already makes parts for Bombardier's Q100, Q200 and Q300
models, according to the Canadian company's Web site.
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