01/23/2015 04:47 EST | Updated 01/23/2015 04:59 EST

Bombardier Lays Off 150 As Montreal Metro Production Halted


MONTREAL — Bombardier is laying off about one-third of the 430 workers at its railway manufacturing plant in La Pocatiere, Que., for six months as it temporarily halts production of cars for the Montreal subway.

About 150 workers will be laid off at the end of April until the end of October because of late delivery of a key part from a supplier to its contract partner, Alstom.

Bombardier (TSX:BBD.B) has built 40 subway cars to date but can't complete them until it receives the part, an automated control system, from Ansaldo STS.

A Bombardier spokesman said the subway cars, which were scheduled to be delivered beginning in the second quarter of this year, will be delayed until the end of the year.

Marc Laforge says all 468 subway cars in its contract will be delivered as scheduled by the end of 2018.

Financial penalties for late delivery, which are spelled out in the contract, will be discussed with the Montreal transit authority, Alstom and Ansaldo.

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