TORONTO—Toronto-based Magellan Aerospace announced Apr. 3 the sale of the land and building of its Mississauga facility for $32.7 million to an undisclosed buyer.
Magellan will lease a new facility that will be built by the buyer on the existing site of its current facility.
According to Magellan, this decision was made to improve manufacturing efficiency, operational performance, profit margins and cash flow.
“Magellan’s customers expect and demand that we continue to reduce costs and improve efficiency to remain competitive. The decision for a facility rationalization allows for reduced cost and increased overall Magellan manufacturing efficiency, while simultaneously preserving our manufacturing capacity for the future,” said Phillip Underwood, Magellan’s CEO.
The move to the newly built facility is expected to be completed and operational in the early part of 2019.