ExelTech Aerospace to build hangar at Pierre Elliott Trudeau Airport

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This article was published 28/08/2007 (6924 days ago), so information in it may no longer be current.

MONTREAL (CP) – After hesitating between Montreal and the southern United States as potential locations for its new hangar, ExelTech Aerospace Inc. (TSX:XLT) has opted to build locally, creating about 100 jobs at Pierre Elliott Trudeau International Airport.

The $21 million hangar means the maintenance, repair and overhaul company will increase it’s capacity by 30 per cent when the new facility is built by spring 2008.

Being close to the technical capacities of Montreal aerospace industry offset some of the higher costs attributed to building here, ExelTech President Derek Nice told the company’s annual meeting Tuesday.

Nice promised the new installations would be the most modern on the continent and would become the principal maintenance facility for ExelTech to work with Bombardier’s CRJ regional jets and twin-turboprop ATR42/72.

The new complex includes two 40,000 square-foot hangars linked by 30,000 square-feet worth of repair work areas and 20,000 feet of office space.

The building will allow ExelTech to move out of the old Quebecair and Canada 3000 hangars it currently occupies. Both were built in the late’40s and will be razed to allow for airport expansion.

While the new facilities will allow ExelTech to continue to grow, sooner or later, the company realizes it will need to have a presence in its two principle markets in the southern United States or Latin America.

“We know that we cannot continue to break into this market without having installations closer to our actual and potential clients,” Nice said.

Three possibilities exist for ExelTech, Nice said. One would involve buying a local competitor or joining forces with it; taking over the installations of a carrier which would sub-contract ExelTech to provide maintenance services or to build their own facility from scratch.

ExelTech currently counts as part of its client base 16 of the 25 most important regional air carriers in the United States, as well as 15 in Latin America, numerous Canadian companies as well as some European and Russian air carriers.

“We see enough interest in Europe to justify a detailed examination of the installations (available) in this market,” Nice said.

ExelTech, third most important in its line of work in Canada, will have nearly 600 employees once it opens its new building, built with a mix of government assistance, a bank mortgage and cash.

Other than its operations in Dorval, Que., ExelTech also has a 100,000 square-foot hangar in Quebec City designed for Dash-8 and Boeing 737 maintenance.

Meanwhile, the company announced its net earnings were $18,791, down considerably from $172,182 reported during the first quarter in 2006.

Revenues for the quarter increased 24 per cent to $13.7 million for the first quarter.

ExelTech lost 4.3 per cent to $0.34 cents in trading Tuesday on the Toronto Stock Exchange.