MONTREAL — Workers at Bombardier Transportation in Thunder Bay and at other company facilities will have a new employer early in the new year.
Montreal-based Bombardier and France-based Alstom say they now expect Alstom's purchase of the rail division to be formally completed on January 29, 2021.
They announced Tuesday that all necessary regulatory approvals required to complete the transaction have been received.
Alstom is paying US $8.4 billion, but Bombardier's net proceeds will be about US $4 billion, including US $585 million in Alstom shares.
The cash will go toward paying down Bombardier's debt.
The Canadian company which built a global profile making trains and aircraft announced plans in February 2020 to sell its rail division to Alstom, saying it planned to focus exclusively on manufacturing business jets.
Alstom, which will become the world's second biggest maker of rolling stock, behind only a Chinese company, has committed to establishing its North American headquarters in Montreal.
Canadian Press has also reported that it intends to set up a research centre and improve production at Bombardier's plant in La Pocatiere, Quebec, which is said to be running out of orders.
Officials with both Bombardier and Unifor have previously stated that the Thunder Bay plant will be in jeopardy unless it receives additional orders before the end of 2021.
Dominic Pasqualino, president of Unifor local 1075, said Tuesday he believes there should be enough work for the Bombardier facilities in both Ontario and Quebec.
"I think it would be difficult for the Ontario government to order vehicles and see them built in Quebec. And I know Quebec feels the same way about having their rail cars being built in Ontario. I think there's room for both areas to expand," he said.
