LAUAK AEROSPACE’s SUCCESSFUL LAUNCH OF ITS FIRST MANUFACTURING OPERATION IN MEXICO: PRODENSA’s TESTIMONIAL
During the spring of 2018, we had the opportunity to meet Mr. Guillaume Bajolet, VP of North American Sales for Lauak Aerospace, who at that time had just relocated with his family to Canada, near Montreal.
Given the expansion efforts and strategy of Lauak Aerospace, the French manufacturer had just acquired Bombardier’s Tubing & Systems activities, which included a manufacturing operation in Mirabel, Canada. This would be the first operation outside of Europe for Lauak, and Mr. Bajolet was in charge of taking over the operation and increasing the customer base.
Since its establishment in 1975, Lauak Aerospace has been a strategic supplier for some of the key players of the aerospace industry, with Dassault, Airbus, Bombardier, and Safran as its main customers, providing solutions in 4 core businesses: sheet metal, hard metal machining, tubes & pipes, and mechanical-welded parts for aero engines.
With the new operation in Mirabel, one of the company’s strategic moves was to increase its North American manufacturing capabilities, and the conversation about a possible expansion into Mexico, as a low-cost manufacturing site, started. The operation in Mirabel and a potential new site in Mexico were considered key to developing and growing the customer base of companies like Boeing, Spirit, Collins, and GE.
After Mr. Bajolet concluded a very detailed cost analysis for Lauak’s Mexico operation, the project was greenlighted. A proper due diligence explored different locations and Mexican states until it was determined that the State of Queretaro was ideal for the project, mainly due to the presence of Bombardier, Safran, and other aerospace companies.
During the decision-making process, we as Prodensa had the opportunity of hosting Mr. Bajolet and Mr. Charritton (Lauak’s CEO) for a 2-day work agenda in Querétaro, which included several meetings with Government authorities, key players of the State’s aerospace industry, and academic personalities, as well as visits to manufacturing operations and industrial properties. During the agenda and in the conversations with Mr. Bajolet and Mr. Charritton, we were able to find that Lauak and Prodensa shared very similar values and that the potential relationship would be very successful for both. Still, we had to work hard to be selected as their partners.
After the agenda in Queretaro, we started working on developing the right strategy for the project, which included the company to start-up in Mexico under the shelter program. The Prodensa approach represented the advantage of a faster set-up process and the minimization of liabilities for Lauak in Mexico, given that the legal entity would be a subsidiary of Prodensa, although exclusive for Lauak. Following the negotiation process (which took a few months), we were shared the news that Prodensa had been selected as Lauak’s partner. After the joy and celebration, it was time for us to prove that Prodensa was the right choice!
The kick-off meeting was planned in Lauak’s Mirabel facility, for which the Prodensa’s operations team traveled to Canada in order to have meetings with all team members that were to be involved in the project, as well as to receive all necessary information about the processes, operational details, procedures, among others.
Once back in Mexico, it was Prodensa’s responsibility to meet the project’s deadlines, which had a very aggressive timeline (Lauak had a very tight plan to be operational and produce parts to Bombardier). Still, with the hard work of all people involved, most deadlines were achieved. By summer 2019, the facility was fully operational, with a Shelter IMMEX program, a VAT certification, and installed machinery and equipment.
Today, Lauak Aerospace in Queretaro has 47 employees, and the facility is set up as a complete shop floor and full turn-key solution, with integrated processes, focused on tubes and pipes for the highly demanding aerospace industry. In the short term, Lauak Queretaro will also incorporate sheet metal processes to continue growing its customer base in North America.
It’s been a true honor to be considered a strategic ally of Lauak in its new manufacturing operation in Mexico.
Watch the full interview with Guillaume Bajolet, VP of Lauak Aerospace:
About the authors:
This is a collaboration with the Aerospace Cluster of Queretaro, and our Business Development Team.
The Aerospace Cluster of Queretaro facilitates and enhances opportunities for the development of the aeronautics and space industry, bringing together companies, research centers, academia, and government authorities in the State of Queretaro and the region.
Carlos Loyola, Business Development Director, is our aerospace market expert. Carlos has used his role in Business Development to forge strong industrial relationships with leading companies in the field. With a multicultural experience in markets across North America, Europe, and Asia, his main aim is to bring more exciting businesses to Mexico.
If you are interested in detailed information about manufacturing operations in Mexico, click here. We are ready to assist you!