Minister Bains announces repayable program contributions for Bombardier to foster Canadian innovation and strengthen the aerospace sector
DORVAL, QC, Feb. 7, 2017 /CNW/ - The Government of Canada is committed to keeping Canada at the forefront of global leadership in the aerospace sector. The aerospace industry is one of the most innovative industries in Canada, and it provides over 211,000 quality jobs for Canadians and $28 billion annually in GDP to Canada's economy.
That is why, today, the Government of Canada announced that it will provide $372.5 million in repayable contributions to Bombardier Inc. This funding will be provided over four years and will support thousands of good middle-class jobs, strengthen the long-term competitiveness of Bombardier and help to build the aircraft of the future.
Through its collaboration with Bombardier, the Government of Canada is investing in thousands of Canadians and hundreds of suppliers across the country. As the nation's largest aerospace company, Bombardier supports thousands of jobs in design, engineering and manufacturing through its nation-wide supply chain of companies.
This initiative by the Government of Canada will fund research and development for the new Global 7000 business jet and ongoing activities related to the development of the company's C Series aircraft.
The Government of Canada has a long-standing relationship with Bombardier, Canada's biggest private sector investor in research and development activities. These activities strengthen the skills and knowledge of Canadians working in the aerospace sector, and they lead to new manufacturing platforms that position Canadians working in the sector for the jobs of tomorrow. The resulting benefits enable Canada to maintain a competitive position in the global supply chain that forms the aerospace sector.
"This contribution from the Government of Canada will secure the highly skilled, well-paying jobs for middle-class Canadians who work in the aerospace sector. It will also ensure that Canada has a strong, stable and competitive aerospace industry, which is a major driver of economic activity and innovation across the country. Bombardier plays a vital role, both as an anchor employer and an innovation leader. The Government of Canada is proud to invest in research and development activities that secure Canadian jobs, while enabling Bombardier to grow as a globally competitive company for years to come."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
"We welcome the continuing partnership with the Canadian government. The repayable contributions announced today will help to ensure that Canada remains at the centre of Bombardier's research and development activities, which are focused on developing the most efficient, reliable and environmentally friendly aircraft in the world. While we compete globally, we are proud of our Canadian home, our heritage and our position as one of Canada's leading high-technology manufacturers and employers."
– Alain Bellemare, CEO, Bombardier Inc.
- Aerospace leads all manufacturing industries in research and development. It accounts for nearly one-third of all research and development activity in Canada's manufacturing sector, which translates to $28 billion of economic activity every year. Canada's aerospace sector employs, directly and indirectly, 211,000 people across the country.
- Aerospace companies are Canada's leading exporters in terms of trade intensity at twice that of the manufacturing average. Close to 80 percent of aerospace manufacturing was exported in 2015.
- The repayable contribution to the Global 7000 jet will be made through the Strategic Aerospace and Defence Initiative (SADI). This program supports specific research and development activities that help aerospace and defence companies develop new technologies.
- Another portion of this investment will be made through the government's existing contribution agreements with Bombardier. This contribution will support ongoing activities related to the development of the company's C Series aircraft. The C Series is an example of Canadian innovation and clean technology that is the future of the aerospace industry.
- In May 2005, Canada first announced that it would support the C Series with a $350-million repayable contribution.
- On October 11, 2016, the government announced an investment of up to $54 million to support a Bombardier-led consortium under the Technology Demonstration Program. The consortium will develop state-of-the-art electric systems and advanced aerodynamic systems that will make the aircraft of the future more energy efficient, reliable and quiet.
- Backgrounder: Bombardier contribution
Follow Minister Bains on Twitter: @MinisterISED
The Government of Canada today announced $372.5 million of repayable program contributions to Bombardier for two projects: to support the development of the Global 7000 business aircraft through the Strategic Aerospace and Defence Initiative (SADI) and the C Series, under existing contribution programs. Subject to the execution of final agreements, the program contributions will be provided over four years, in a number of installments, with the majority allocated to the Global 7000. These program contributions will secure high-quality jobs in design, engineering and manufacturing across Canada through Bombardier's ongoing work on the technologies and innovations that will be the future of the aerospace industry. Specifically, the C Series program directly employs approximately 2,000 people and at full production, the Global 7000 is expected to directly employ approximately 3,000 people.
Strategic Aerospace and Defence Initiative
The Strategic Aerospace and Defence Initiative (SADI) was launched in 2007. It provides repayable contributions to support research and development (R&D) projects in the aerospace, space, defence and security sectors. SADI is available to firms of all sizes to support product, service or process innovation. The program is managed by Innovation, Science and Economic Development Canada's Industrial Technologies Office.
SADI has three objectives:
- to encourage strategic R&D that will result in innovation and excellence in new or improved products, services and processes;
- to enhance the competitiveness of Canadian aerospace and defence companies; and
- to foster collaboration between research institutes, universities, colleges and the private sector.
Bombardier and the Canadian aerospace industry
Bombardier is a leading-edge Canadian corporation that develops, markets and sells both aircraft and railway equipment worldwide. Bombardier is headquartered in Montréal and employs 66,000 people around the world, including over 21,000 in Canada. The firm is a key anchor to Canada's world-class aerospace industry, with a supply chain and highly skilled workers located across the country, in particular in the Toronto area and the Montréal world-class aerospace cluster. Bombardier Inc. has been the top corporate R&D investor in Canada since 2012.
The aerospace industry contributed more than $28 billion to Canada's gross domestic product and 211,000 jobs to the Canadian economy in 2015. Aerospace manufacturing is the number one R&D investor across manufacturing industries and accounts for close to 30 percent of total manufacturing's R&D investments.
Bombardier C Series
The Government of Canada has a long-standing relationship with Bombardier, recognizing its importance to the aerospace sector in Canada. The government was an early investor in the R&D of Bombardier's C Series aircraft.
In May 2005, Canada first announced that it would support the C Series with a $350-million repayable contribution, and in 2008 the contribution agreements with the firm were signed. At the same time, Quebec made a $117-million contribution and the Government of the United Kingdom contributed £123 million.
The C Series aircraft is a made-in-Canada clean technology and is "designed for environment." It delivers 18-percent lower seat-mile costs, a 20-percent advantage in fuel burn and CO2 emissions, a 25-percent reduction in maintenance costs, and a smaller noise footprint by a factor of four compared to in-production aircraft. As Bombardier designed the aircraft assessing its environmental impact from design through manufacturing to operation and end-of-life, it earned the C Series an Environmental Product Declaration—an industry first.
With additional program contributions to the existing C Series programs, Bombardier can continue pursuing forward looking innovative and green aircraft technology development activities.
Bombardier Global 7000
The Global 7000 introduces a new family of business aircraft that has the largest cabin and the longest range in the ultra-long-range market segment. This aircraft will offer the capability of connecting key cities, enabling customers to travel to more destinations faster, with greater efficiency. R&D activities for the Global 7000 program address technological requirements that will allow Bombardier's Global family of aircraft to offer industry-leading performance.
SOURCE Innovation, Science and Economic Development Canada
For further information: Philip Proulx, Press Secretary, Office of the Minister of Innovation, Science and Economic Development, 343-291-2500; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, firstname.lastname@example.org; Simon Letendre, Senior Advisor, Public Affairs, Bombardier Inc., 514-861-9481