MONTREAL, Jan. 21 /CNW Telbec/ - The Boeing Company (NYSE: BA) today
announced that it has provided contracts worth more than $420 million to
companies in Quebec.
The announcement follows the Canadian government's 2007 order for four
C-17 Globemaster IIIs, the first two of which already are in service with
Speaking today at an event hosted by Industry Canada in Montreal, Mark
Kronenberg, Boeing Integrated Defense Systems vice president for International
Business Development, explained that Boeing was well on track for meeting the
Canadian government's Industrial Benefits (IB) policy.
"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 Kronenberg. "This will result in long-term, high-value jobs
for Canadians and will further embed Boeing as a long-term partner with
Canadian industry, particularly with our partners here in Quebec."
As part of the C-17 acquisition contract, Boeing agreed to match the
purchase price of the four aircraft with dollar-for-dollar investments back
into the Canadian economy through a C-17 IB program coordinated by Industry
Canada. Boeing already has identified more than 66 percent of its total C-17
IB program obligations.
Boeing will identify the remaining 34 percent of IB obligations over the
next three years. Boeing also agreed to a collateral agreement that provides
further industry benefits worth $750 million over 20 years for the in-service
support of the C-17 fleet.
To date, Boeing has signed contracts with several partners based in
- Bombardier: Executive jets
- CAE: Civil aviation simulator
- Eedo: Force 10 training management tool system
- Goodrich (subcontracted work): Goodrich has subcontracts with several
Quebec suppliers, including Heliplex Springs, Hochelaga Aerospace,
Optimus Ltd., SIDO Ltd., and Vac-Aero International
- McGill University: Investment to establish "Boeing Fellows" who will
complete research on contemporary issues in air and space law
- Minicut: High-speed steel endmills
- Howmet Castings: C-17 direct supplier for strake castings
- Aeromecachrome: C-17 direct supplier for upper wing fuel access doors
Additionally, Boeing has partnered with RTI International Metals
(NYSE: RTI) and invested in the RTI Claro facility in Montreal in support of
the $346 million of contract work that RTI Claro will perform for Boeing
Commercial in Quebec.
These supplier agreements complement Boeing's already significant
involvement in Quebec. Over the years, Boeing has partnered with many
suppliers in the region. These companies provide goods and services for the
company's major business units - Boeing Commercial Airplanes and Boeing
Integrated Defense Systems. As the Canadian Forces continue to modernize their
defense systems, through efforts such as the Medium-Heavy Lift Helicopter
program, Boeing anticipates that it will sign additional contracts to further
expand its supplier base in the region.
The C-17 Globemaster III provides Canada with a critical new airlift
capability to meet its international commitments. The C-17's ability to fly
long distances and land in remote airfields in land-locked regions make it the
right airplane for Canadian humanitarian, peacekeeping and military missions,
domestically and abroad. The aircraft already has been used to support
Canadian Forces serving in Afghanistan.
Boeing is a major contributor to the Canadian economy, generating
approximately $1 billion in business annually. Boeing employs more than 1,400
highly-skilled employees in Quebec, British Columbia and Manitoba who work in
support of the company's major business units. Canada also is home to the
third-largest international supplier base for Boeing, including many
high-quality suppliers spanning every region of the country.
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of
the world's largest space and defense businesses specializing in innovative
and capabilities-driven customer solutions. Headquartered in St. Louis, Boeing
Integrated Defense Systems is a $32.4 billion business with 72,000 employees
For further information:
For further information: Damien Mills, Boeing Integrated Defense
Systems, (562) 797-1053, firstname.lastname@example.org; Martin Sampson,
Fleishman-Hillard Canada, (613) 238 -2090 x 351, email@example.com