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    Bombardier to Sell Aerostructures Business in Belfast and Morocco

    Bombardier to Sell Aerostructures Business in Belfast and Morocco

    Aerostructures business continues to witness radical changes in its market structure. The year 2018 witnessed a number of high-value M&A activities in the industry. Major tier players acquired other tier players with an aim to capture a larger chunk of the market. At the same time, Boeing and Airbus have announced backward integration by making crucial components including aerostructures for their upcoming programs. Boeing’s move of making wings for its upcoming aircraft program B777x in-house is one of the major examples of such a shift that is taking place in the market.

    In yet another development, the Canadian aerospace and rail firm Bombardier announced plans to sell its manufacturing sites in Northern Ireland and Morocco on May 02, 2019.  Around 3,600 people are employed in the Belfast plant in Northern Ireland, with at least 400 more in Morocco. The Belfast plant specialises in aircraft components, engine nacelles and manufactures wings for the A220 aircraft.

    In a statement the company said: “Our sites in Belfast and Morocco have seen a significant increase in work from other global customers in recent years.  We are recognised as a global leader in aerostructures, with unique end-to-end capabilities – through design and development, testing and manufacture, to after-market support. As the company moves to optimize its global manufacturing footprint, Bombardier will pursue the divestiture of the Belfast and Morocco aerostructures businesses. These are great businesses with tremendous capabilities, said the company in its press release.

    The Montreal-based company added that it planned to bring all of its aviation brands, which include Learjet and the CRJ, under one roof “into a single, streamlined and fully integrated business.” No new redundancies have been announced and Bombardier has said it is committed to finding the right buyer.

    As per Stratview Research’s report, the global aerostructures market is projected to grow at a healthy rate over the next five years to reach US$ 82.9 billion in 2024. According to the report, recent market consolidation at tier level has compelled both the airframers to go back with their former strategy of making crucial parts in-house. Also, the major tier-I players generally enjoy higher margins than OEMs, which is another factor pushing OEMs to increasingly produce crucial aircraft parts in-house.

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    News Source: CNBC

    Market Estimates: Aerostructures Market Report