In a significant move, aerospace and industrial systems manufacturer Woodward Inc. has announced plans to close its Peterborough, Ontario facility and transition its operations to Krakow, Poland, by August 31, 2027. This decision, which affects approximately 165 employees, comes as the company reassesses its operational strategies amidst changing market demands.
Closure Announcement and Employee Impact
On Tuesday, Woodward informed its staff at the Peterborough site about the impending closure. The company, headquartered in Fort Collins, Colorado, acquired the facility in July 2025 from Safran. It has since utilised the site for the production of specialised electromechanical systems essential for aviation. In a statement to Global News, Woodward explained that the decision was made after a thorough review of its operations, financial objectives, and future customer needs.
“We determined the Peterborough site is not suited to support future growth,” the company stated, acknowledging the significant impact this shift will have on the workforce. “We recognise the real impact this move has on the people working at our Peterborough site and are committed to managing the transition thoughtfully and respectfully, as well as in line with our obligations.”
Shift in Strategic Focus
The announcement follows a visit to the Peterborough facility in November 2025 by federal Defence Minister David McGuinty and local MP Emma Harrison. During their visit, both officials highlighted the potential for growth at the site, particularly in light of increased federal defence spending. The stark contrast between this optimistic outlook and Woodward’s recent decision raises questions about the future of aerospace manufacturing in Canada.
The transition of production from Peterborough to Krakow will occur in phases, with the Polish facility being better equipped to meet Woodward’s long-term operational requirements. The company noted that Krakow’s strategic location would enhance its ability to serve European customers and maintain close ties with key suppliers.
Engineering and Union Engagement
As part of the transition, engineering support currently based in Peterborough will also relocate to Krakow and Sofia, Bulgaria. Woodward has communicated with the union representing its employees in Peterborough and has committed to ongoing engagement in accordance with applicable laws.
“We will continue to engage with the union in good faith,” the company affirmed. This commitment suggests a focus on ensuring a respectful transition for the affected employees, although the closure inevitably brings uncertainty and challenges for those impacted.
Why it Matters
The decision by Woodward Inc. to relocate its operations represents a broader trend in the aerospace industry, reflecting shifts in manufacturing strategies and global market dynamics. For the local economy in Peterborough, the closure poses a significant challenge, affecting employment and community stability. As Canada continues to invest in its defence sector, the fate of facilities like Woodward’s highlights the complexities of balancing national interests with corporate strategies in an increasingly globalised market.
