Dive Brief:
- Diehl Aviation is building a new aerospace component production site at an industrial park near Querétaro, Mexico, according to a May 28 company press release.
- The new site aims to bring the Germany-based company closer to its North American customers by enabling shorter travel and transport routes.
- Production is set to start in mid-2025 and will initially create 30 jobs, with plans to increase to around 500 employees in the long-term.
Dive Insight:
The factory’s first product will be overhead bins for Airbus A220 aircraft assembled in Mirabel, Canada, and Mobile, Alabama, according to the release.
"The order is particularly important for us because this is the first time that we have been represented with our solutions on the A220. We are very excited to be working with the Airbus A220 team,” Harald Mehring, chief customer officer at Diehl Aviation, said in a June 2023 announcement for the order.
France-based Airbus has been a long-term customer of Diehl Aviation. The companies recently collaborated to make touchless lavoratories, new titanium wastewater tanks and a modern airspace cabin.
Diehl Aviation’s product portfolio includes overhead bins, cabin lighting and lining, lavatories and water management systems. The company did not disclose what other components the site will make.
Airbus has been making moves to strengthen its supply chain in North America. The France-based aircraft maker has been in talks to acquire Spirit AeroSystems since last year. The two companies have also been trying to reach a pricing agreement for Airbus’ A350 and A220 programs, which are set to significantly ramp up production.
Diehl Aviation chose Querétaro for its central location, proximity to Querétaro International Airport and the fact that the city is one of five aerospace industrial hubs in Mexico, according to the International Trade Administration. The company will be next to other aerospace manufacturers in the area including Airbus, Boeing, Bombardier, Safran and Honeywell.
Diehl Controls, a division of parent company Diehl Group that makes electronic components, also has a facility already in Querétaro.
The strategic move is part of a larger trend to nearshore manufacturing to Mexico, with companies often citing cheaper production costs and a more local supply chain compared to other production hubs like China.
Diehl Aviation has other North America sites in Sterrett, Alabama, Charleston, South Carolina, and Everett, Washington.
