Bombardier targets sales in Asia Pacific to reach 25% next five years

KUALA LUMPUR (Aug 28): Canada-based Bombardier Inc, which manufactures planes and trains, targets the sales of its operations in the Asia Pacific to grow to 25% in the next five years, said its president of systems division, Pierre Attendu.

“There is tremendous opportunities in Asia and we expect sales in this region to be between 20% and 25% from the current 15% in the next five years,” Attendu told reporters, after launching its new office in Kuala Lumpur Sentral yesterday.

On the next phase of growth, Attendu said Bombardier will work with local partners to bid for more rail-related projects, especially in the area of signaling and rolling stock.

“Our local partners include Hartasuma Sdn Bhd and Global Rail Sdn Bhd. We will continue to seek local partners that have strong capability and competitive edge, with good track record, to bid for more rail-related projects,” he added.

As for the next bid, Attendu said Bombardier is eyeing the upcoming third light rail transit (LRT-3) and the second mass rapid transit (MRT-2) projects.

“We missed out in providing the rolling stock for the first phase of the MRT project, but we will be there for the second phase and any other rail related,” he said.

The 36km LRT-3, estimated to cost some RM9 billion, is slated to start in Bandar Utama, Damansara and cut across Shah Alam to Klang.

On the other hand, the MRT-2 project is said to connect Sungai Buloh to Putrajaya via Kepong, Sentul, Kampung Baru, the Tun Razak Exchange and Serdang.

The government has yet to announce the final details for both the LRT-3 and MRT-2 projects.

On outlook, Attendu said that China and India are the two important markets in Asia, due to their geographical size and large populations.

According to Population Reference Bureau, a think tank based in Washington, Asia is currently home to 60% of the global population, while both China and India account for more than half of Asia’s total population, estimated at 36.8%.

Attendu said Bombardier has yet to set a footprint in emerging markets like Myanmar, as the country is still in the midst of strengthening its priorities in other industries.

“When the time is right, we will eventually go there,” he added.

For the financial year ended Dec 31, 2013 (FY13), Bombardier saw its net profit rose 23% to US$564 million, from US$470 million, while revenue grew 11% to US$18.2 billion, from US$16.4 billion a year ago.

Last year, its transportation operations in the Asia Pacific contributed 9% or US$770 million to the group’s total revenue, which rose 17% from US$658 million previously.

Its order book, noted Attendu, stands at more than US$30 billion currently.