Department of National Defence

Department of National Defence

July 11, 2012 12:46 ET

Minister Yelich: Support for Canadian Forces Benefits Industry in Saskatoon

SASKATOON, SASKATCHEWAN--(Marketwire - July 11, 2012) - The Honourable Lynne Yelich, Minister of State (Western Economic Diversification), on behalf of the Honourable Bernard Valcourt, Associate Minister of National Defence and Minister of State (Atlantic Canada Opportunities Agency) (La Francophonie), today announced that SED Systems in Saskatoon will benefit from additional work created by the Government of Canada's decision to implement the Light Armoured Vehicle (LAV) III Upgrade Project.

"Today's announcement demonstrates our continued support of our brave men and women in uniform and skilled Canadian workers - including right here in Saskatoon," said Minister Yelich. "Our investments are providing the Canadian Forces with the modern equipment to conduct their dangerous missions successfully while creating jobs across the country."

This milestone results from the Government of Canada's announcement of a $1.064 billion contract awarded to General Dynamics Land Systems - Canada (GDLS-C) in October 2011. A $5.1 million subcontract has now been awarded by GDLS-C to SED Systems for the manufacture of three high-quality power control module units per vehicle, for a total of 1227 units. Power control modules are used to control and distribute electrical power throughout the LAV III vehicles.

"Canadian soldiers need the best tools for the job and deserve the best vehicle we can give them," said Danny Deep, vice president of General Dynamics Land Systems-Canada. "The LAV III Upgrade Project will enhance the LAV III fleet's survivability, operational capability and long-term performance through the addition of cutting-edge technologies such as SED's power control module. With our Canadian design and manufacturing base and over 500 suppliers located in every province of Canada, we are proud to say that the best armoured vehicles in the world are made in Canada."

Today's announcement is an important example of how the Government of Canada and Canadian industry are working together to support our Canadian Forces, while creating innovation and economic growth. The Government of Canada's agreement with General Dynamics commits the company to re-investing 100% of the value of their contract award back into the Canadian economy and companies like SED Systems in Saskatoon.

"The Government of Canada is committed to maximizing economic benefits from all major defence and security procurements," said the Honourable Christian Paradis, Minister of Industry. "The Industrial and Regional Benefits policy is a vital instrument through which we support our industry as a global leader."

Canada's LAV III vehicles have served the Canadian Forces in Afghanistan and other areas of operation - including last year's floods in the Prairies. They are state-of-the-art combat vehicles used to transport infantry on the battlefield while providing defensive protection and firepower.

The LAV III Upgrade Project, one of four Family of Land Combat Vehicle projects announced by the Government of Canada, will upgrade the LAV III fleet by improving the protection, mobility, and lethality of the LAV III platform for decades to come. he subcontract award announced today is expected to support 15 skilled jobs in Saskatoon, Saskatchewan.

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