Quebec to invest $1bn in Bombardier's troubled CSeries jet

The provincial government in Quebec is to invest $1bn US dollars (£655m) in Bombardier's troubled CSeries jet.

The narrow-bodied passenger plane's development has placed a major strain on Bombardier's finances.

Bombardier is based in Canada, but it is Northern Ireland's largest manufacturing employer.

The Quebec government will hold a 49.5% stake in a limited partnership set up to complete the CSeries programme.

Lack of demand

The wings for the CSeries are made at Bombardier's Belfast plant.

Bombardier has also confirmed it is cancelling the development of its Learjet 85 business jet.

Earlier this year, it suspended the Learjet 85 programme due to a lack of demand for the plane.

Wing components for the jet are also made in Northern Ireland, but Bombardier says the cancellation will have no impact on jobs in Belfast.

The company reported a quarterly loss of $4.6bn, largely due to writing down the value of its investments in CSeries and Learjet 85.

Alain Bellemare, chief executive of Bombardier, said the deal with the Quebec government comes at a "pivotal time" for the CSeries.

"The market is there, our leadership is in place, we have the best product and with the support of the government, we are ready to make this aircraft a commercial success."

Quebec said its investment will come from the economic development fund that is managed by Investissement Québec, a financing corporation set up to attract investment to the province.

The government will receive 200m stock warrants for its investment.

Each warrant will entitle it to buy a class B share in Bombardier at a price of C$2.21 per share within a five-year period.

Davy Thompson of the union Unite said the Quebec government's intervention was a lesson for politicians in Northern Ireland in how "government action can safeguard employment and support the manufacturing sector.

"We are hopeful that this investment by the Quebec government will give Bombardier breathing space to achieve its sales targets for the CSeries, will safeguard the long-term employment of the workforce here and the wider economic benefit from such high value jobs," he said.