Quebec-based aerospace company gets $6 million in new investments
Meloche Group set to modernize equipment, increase production.
Montreal — A Quebec financing agency and other investors are putting $6 million into Meloche Group, helping the Quebec-based aerospace components company expand its workforce.
The Fonds de solidarite FTQ said Monday it had acquired a stake in Meloche in return for investing $3 million into the Salaberry-de-Valleyfield-based metal parts maker. In addition, Fondaction CSN, Fonds Aerofund II (managed by ACE Management) and the Meloche family each put in $1 million towards the financing.
The private company will use the $6 million raised to modernize equipment and increase production capacity at its two Quebec plants. In addition, Meloche plans to expand its current workforce of 90 people to 150 in the next five years.
“Aerospace is a key industry in Quebec, exporting high-tech products with strong added value,” said Jean Wilhelmy, a senior vice-president with the FTQ investment fund.
“However, its companies are facing stiff international competition and must continuously invest to improve their position. We at the Fonds believe that Meloche Group has what it takes to succeed and capitalize on this industry’s tremendous growth potential.”
Meloche Group machines, treats, assembles and manufactures complex metal parts. The company is a strategic supplier to aircraft company Bombardier Aerospace and jet engine makers Pratt and Whitney and GE Aviation.
“The new capital from Fonds de solidarite FTQ, Fondaction CSN and Aerofund II will not only allow us to boost capacity but to meet the increased demand projected for the medium and long terms and to significantly improve our competitiveness abroad,” said CEO Hugue Meloche.
© 2011 The Canadian Press