Industry Canada

Industry Canada
Government of Canada

Government of Canada

September 14, 2010 12:39 ET

Government of Canada Delivering Long-Term Jobs and Economic Opportunities for Montreal

MONTREAL, QUEBEC--(Marketwire - Sept. 14, 2010) - The Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women, and Jacques Gourde, Parliamentary Secretary to the Minister of Public Works and Government Services, today visited Héroux-Devtek in Dorval, an aerospace firm that is performing work for the F-35 Lightning II aircraft as part of a contract awarded under the Joint Strike Fighter (JSF) program. At the facility, Minister Ambrose and Parliamentary Secretary Gourde highlighted the economic benefits created in Montréal as a result of Canada's participation in the JSF program, the single largest fighter aircraft program in history.

"Canada has already seen a major return on investment from our involvement in the Joint Strike Fighter program; and, with our new investment, we can build on this momentum and propel forward with new opportunities for Canadian companies in the short term and for decades to come," said Minister Ambrose.

Through the JSF program, Canadian companies, such as Héroux-Devtek, will be guaranteed access to competitive opportunities within the JSF partnership, including an estimated $12 billion in potential industrial opportunities for work on the JSF platform. Purchasing the F-35 aircraft now ensures that Canadian companies can access high-value, long-term JSF work by allowing them enough lead time to ramp up for the production, sustainment and follow-on development phases of the program.

"The Government of Canada's decision to purchase the F-35 Lightning II fighter aircraft has opened significant opportunities for Canadian industry. We now have access to bid for parts for the entire global supply chain, which includes contracts for thousands of Joint Strike Fighter aircraft," said Gilles Labbé, President and CEO of Héroux-Devtek.

The JSF program provides an unprecedented opportunity for Canadian firms such as Héroux-Devtek to take part in the global supply chains that will define the aerospace and defence sectors for the next 40 years. Canada joined the JSF program in 1997, in anticipation of the Canadian Forces' need to replace its current fleet of CF-18s. To date, Canada has invested approximately $168 million to the JSF program; and, since 2002, this investment has led to more than $350 million in contracts with more than 60 Canadian companies, research laboratories and universities. An example of additional upcoming work includes the recently announced Avcorp contract, which has a value of up to $500 million.

The economic impact of this program will be felt across Canada, from Vancouver to Halifax and many communities in between, including Montréal, Cold Lake, Winnipeg, Toronto, Bagotville, and many more. This investment is needed now to ensure the long-term strength of our world-class aerospace industry.

"Our government's investment in the Joint Strike Fighter program is great news for the Canadian Forces, the local community and the Canadian economy," said Parliamentary Secretary Gourde.

"Investments in aerospace such as these will provide university and college graduates with interesting and exciting job opportunities," said Serge Brasset, Director General of the Collège Édouard-Montpetit and Director of the École nationale d'aérotechnique. "The Canadian and Quebec aviation industry will be able to remain a world leader thanks to a high-quality, skilled workforce."

The development of the F-35 is the largest cooperative program of its kind since World War II. This United States-led partnership includes Canada, Australia, Denmark, Italy, the Netherlands, Norway, Turkey and the United Kingdom. As a partner nation, Canada is in a position to secure high-value work on the entire JSF program, such as the manufacturing of the wingbox parts and inner wing bulkheads that will be done at Héroux-Devtek.

"Contracts resulting from Canadian military supply programs allow players in the aerospace industry to participate in the global supply chain and remain leaders in innovation, while creating value-added jobs for the many workers in our industry," said Suzanne M. Benoît, General Manager of Aéro Montréal.

Héroux-Devtek serves two main market segments: Aerospace and Industrial Products, specializing in the design, development, manufacture, repair and overhaul of related systems and components. Héroux-Devtek supplies both the commercial and military sectors of the Aerospace segment with landing gear systems (including spare parts, repair and overhaul services) and airframe structural components. The company also supplies the Industrial Products segment with large components for power generation equipment and precision components for other industrial applications. Approximately 70 percent of the company's sales are outside Canada, mainly in the United States. The company's head office is located in Longueuil, Quebec, with facilities in the Greater Montréal area.

 For more information on the JSF program, please visit National Defence's website (www.forces.gc.ca/site/news-nouvelles/news-nouvelles-eng.asp?cat=00&id=3471).

BACKGROUNDER

Industrial Participation — Joint Strike Fighter Program

The Government of Canada's participation in the Joint Strike Fighter (JSF) program brings significant benefits to Canada. As a global program, it positions Canadian industry at the start of a multi-year, multi-billion dollar program with an international market. Further, the government's long-term investment in this aircraft development program provides Canada's aerospace and defence industries with an unprecedented opportunity to be a part of the JSF global supply chain, advancing their technologies, while bringing jobs and sustained economic benefits to regions across Canada.

Canada joined the JSF program in 1997, in anticipation of the need for the Canadian Forces to replace its current fleet of CF-18s, which is expected to reach the end of its operational life in the 2017–20 time frame.

The development of the F-35 is the largest cooperative program of its kind since World War II. This United States–led partnership includes Canada, Australia, Denmark, Italy, the Netherlands, Norway, Turkey and the United Kingdom. As a partner nation, Canada is in a position to secure high-value work on the JSF program.

Industrial Participation

Since 1997, Canada has been involved in the development, design and initial production phases of the JSF program. In 2006, the Government of Canada signed the Production, Sustainment and Follow-on Development Phase Memorandum of Understanding (MOU). In this MOU, the partners agreed to implement a best-value approach to maximize industrial benefits and the affordability of the JSF program for partner countries.

Because Canada is a member country, Canadian companies are among those eligible to bid on the work packages that flow from this project. Canadian companies must offer competitive technologies at competitive prices to be successful on the JSF program.

Industry Canada has signed industrial participation plans with each of the JSF prime contractors (Lockheed Martin, Pratt & Whitney, and the General Electric Rolls-Royce Fighter Engine Team). These industrial participation plans meet the Government of Canada's objective of encouraging foreign industry to establish long-term relationships with Canadian industry. Industry Canada continues to work cooperatively with National Defence to identify and pursue opportunities with JSF prime contractors.

In addition to providing access to competitive opportunities, the industrial participation plans identify strategic industrial opportunities for Canada that build on Canadian strengths in the areas of landing gear maintenance, composite manufacturing, hard metals machining and complex structure assembly.

Benefits to Canada

Canada has made payments of approximately $168 million to the JSF program; and, since 2002, this investment has led to more than $350 million in contracts with more than 60 Canadian companies, research laboratories and universities. Canada has already seen a two-to-one return on its investment.

This program provides Canada with an unprecedented opportunity for long-term and high-quality work in the aerospace and defence sectors. Partner nation acquisitions of the aircraft are expected to exceed 3000 units, and overall production could exceed 5000 aircraft worldwide as other non-partner countries replace their aging fighter fleets. Canadian industrial participation in the JSF program is not limited to the work associated with the 65 Canadian aircraft; Canadian companies will contribute to the manufacture and service of thousands of aircraft.

The work packages available for Canadian companies will include not only the manufacturing and assembly of parts but also servicing, repair, simulation and training, in addition to numerous other sustainment activities over a 40-year period. Early estimates show that the opportunities available to Canada on production could total $12 billion through these industrial participation plans. Further opportunities from training, simulation and maintenance will add to this figure as the industrial benefits from the JSF program continue to flow to Canadian companies throughout the operational lifespan of the worldwide fleet.

For more information on the Next Generation Fighter Capability, please contact the Department of National Defence at: 1-866-377-0811/613-996-2353 or www.forces.gc.ca.

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