Bombardier Considers Closing Auburn, New York Production Facility

Rail equipment supplier Bombardier Transportation announced today it considers closing the company’s production facility in Auburn, New York. The action is being considered to help Bombardier’s rolling stock manufacturing business match production capacity with order volume, consolidate operations and reduce overall fixed costs.

William Spurr, President, Bombardier Transportation, North America, was in Auburn today to personally inform employees of the situation. Spurr said closure is being considered based on three primary factors – near-term projected order flow from the North American rolling stock market, the status of some current orders which are winding down toward completion, and the necessity to reduce fixed costs to enhance competitiveness.

Spurr said that despite the possibility of this action, Bombardier Transportation is committed to maintaining a strong presence in the United States and the State of New York as evidenced by its Plattsburgh facility.

“We recognize the difficult nature of this announcement, but it is a necessary part of managing business operations through the ebbs and flows of a market cycle,” said Spurr. “The level of work we have on hand right now dictates that adjustments to our rolling stock production capacity be considered, but we are very conscious of the impact this would have on our Auburn employees and the greater community.”

The Auburn location builds a range of components for Bombardier rail and aerospace products, and employs approximately 160 people.

Spurr said Bombardier Transportation management will be discussing the situation with union representatives in Auburn.

About Bombardier
A world-leading manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended Jan. 31, 2005 were $15.8 billion US and its shares are traded on the Toronto stock exchange (BBD). News and information are available at www.bombardier.com.

For information
Hélène V. Gagnon (North America)
+ 1 450 441 8156