Archived — Harper Government Announces Major Aerospace Investment to Create Jobs and Keep Canada Cutting-Edge

Mississauga, Ontario, December 13, 2010—The Honourable Tony Clement, Minister of Industry, today announced a major investment in a $1-billion research and development (R&D) project being undertaken by Pratt & Whitney Canada Corporation. The investment is expected to create and maintain an average of more than 700 highly skilled jobs during the project work phase and more than 2,000 jobs during the 15-year benefits phase.

"On behalf of the Harper Government, I am pleased to announce this major investment, which is creating jobs and strengthening Canada's economy," said Minister Clement. "The project we are investing in today will create and maintain Canadian research jobs, encourage public and private partnerships, and keep Canada at the forefront of the international aerospace industry."

Minister Clement was joined at the announcement by Bob Dechert, Member of Parliament for Mississauga–Erindale.

The project's R&D work, which will take place in Longueuil, Quebec, and Mississauga, Ontario, will lead to lighter aircraft engines with more power, better fuel consumption and improved durability. The engines will give off fewer emissions and make less noise. They will cost less to own and take less time to make.

"I'm proud to say that Pratt & Whitney Canada is one of this country's major investors in aerospace R&D," said John Saabas, President of Pratt & Whitney Canada. "This repayable investment from the Government of Canada will allow us to continue our efforts to make all our aircraft engines quieter and more fuel efficient, which reduces their environmental impact."

"This important refundable contribution from the Government of Canada to Pratt & Whitney Canada is a prime example of the sound partnerships that allow our nation to remain a world leader in aerospace," said Claude Lajeunesse, President and CEO of the Aerospace Industries Association of Canada (AIAC).

This $300-million repayable investment is being made through the Strategic Aerospace and Defence Initiative (SADI), which supports industrial research and pre-competitive development projects in the aerospace, defence, space and security industries to advance leading-edge R&D by Canadian industries.

For further information (media only), please contact:

Lynn Meahan
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502


Backgrounder

Investing in Aerospace

The Government of Canada will make a repayable investment of $300 million toward a $1 billion research and development (R&D) project by Pratt & Whitney Canada Corporation (P&WC) to develop and demonstrate technologies for its next generation of aircraft engines. The investment is expected to create and maintain an average of more than 700 highly skilled jobs during the project work phase and more than 2,000 jobs during the 15-year benefits phase.

Under its Pre-Competitive Engine Technology Development Program for Gas Turbine Engine Applications, P&WC will develop technologies for the next generation of engines and current engine platforms. This next generation is expected to provide the company with more than 20 years of benefits in the form of sales, parts and after-market support.

P&WC will be focusing its development work on improving engine power, fuel consumption, durability and weight. The work will lead to reducing emissions during engine manufacturing and operation, decreasing the cost of engine ownership and reducing the time required to develop new engines.

P&WC's head office is located in Longueuil, Quebec, and the company has facilities in Quebec (Longueuil, Mirabel and Saint-Hubert), Ontario (Mississauga and Ottawa), Nova Scotia (Halifax) and Alberta (Lethbridge). Well-established in the global aircraft engine market, P&WC offers a range of engine products for long-range and regional aircraft, including helicopters.

P&WC has ongoing collaborative programs with several Canadian universities. This project alone will offer at least 100 student placements per year during the R&D phase.

The government investment is being made through the Strategic Aerospace and Defence Initiative (SADI). Launched in April 2007, SADI supports industrial research and pre-competitive development projects in the aerospace, defence, space and security industries through repayable contributions.

The benefits of SADI include leveraging private sector investment in R&D, attracting foreign investment to Canada, helping to advance technology transfer and innovation, and developing a highly skilled workforce. SADI is managed by the Industrial Technologies Office, a Special Operating Agency of Industry Canada with a mandate to advance leading-edge R&D by Canadian industries.

For more information about SADI, please visit the Industrial Technologies Office website.

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