Jercs and Globemaster IIIs: The Western millions

The benefits tour continues:

Government officials and two aerospace industry giants announced $341 million in contracts for Western Canada on Wednesday at Standard Aero in Winnipeg.

Industry Minister Jim Prentice and Vic Toews, regional minister for Manitoba, welcomed investment commitments made by Boeing and Lockheed Martin as part of previous transactions with the Canadian government.

As required by Canada's industrial benefits policy, Boeing and Lockheed Martin are obligated to reinvest 100 per cent of contract values from aircraft purchases made by the federal government back into the Canadian economy.

"These significant investments are a sign of confidence in the talent and abilities of our region's businesses, which have demonstrated that they have what it takes to become part of Boeing's and Lockheed Martin's global supply chains," said Toews.

In February of 2007, the government purchased four C-17 Globemaster III aircraft and services from Boeing, at a cost of $1.5 billion.

"Boeing will match every dollar spent by the Canadian government in acquiring its C-17 fleet by partnering with and issuing contracts to companies in Canada," said Mark Kronenberg of Boeing.

Boeing has already identified $795 million, more than 66 per cent of its quota, in transactions throughout Canada. The company expects to fulfill the rest of the requirements within the next three years.

Boeing said contracts for Western provinces alone would equal more than $157 million.

So far, Boeing has done business with Western Canadian companies including Avcorp, Boeing Winnipeg, CFER Technologies, Hydratech Ltd., SED, Saskatchewan Indian Institute of Technology, University of British Columbia and Simon Fraser University.

In another recent deal, Canada purchased 17 C-130J Super Hercules aircraft from Lockheed Martin, which in turn will reinvest $842 million back into the Canadian economy.

In a press release, Lockheed said it has already fulfilled 60 per cent of its quota and is working closely with Industry Canada to invest the remaining 40 per cent.

Ross Reynolds, Lockheed Martin vice-president, said the company worked with 300 Canadian companies in the past two years alone, with transactions totalling $266 million US.

Earlier in the week, Prentice announced that Atlantic Canada's share from the industry benefit policy will amount to $290 million while Quebec's portion will be $660 million.

"The deals represent just the beginning of the significant industrial benefits to be realized in the coming years," said Prentice.

The official news release is here.