Speaking 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 Quebec, including:

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 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 in Quebec. The RTI contract will play a role in the current C-17 IB program as well as the anticipated Medium-Heavy Lift Helicopter IB program.

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.

Lockheed Martin Commits $241 Million In Quebec Lockheed Martin has announced initial contract commitments to companies in Quebec that will lead to placing work with at least $241 million of Canadian content value in the region. These commitments are a result of the company's industrial benefits obligation to Canada arising from the government's purchase of 17 C-130J Super Hercules aircraft, and stands as a testament to the quality of the high technology industry in this region.

The announcement is one of four regional announcements which combined will total the first 60% of the industrial benefits obligation under the contract. Lockheed Martin will continue to work closely with Industry Canada and Regional Development Agencies to identify Canadian capabilities for the remaining 40%.

"The addition of the C-130J program will allow us to build on what we are already doing in Canada. It is a tremendous opportunity to strengthen existing relationships in Canada, develop new ones, and work together to enhance the capabilities and expertise of Canadian industry," said Ross Reynolds, Lockheed Martin vice president of C-130 programs. "Lockheed Martin has worked with more than 300 Canadian companies across all regions providing them with contracts worth more than $266 million USD in the last two years alone - outside industrial benefits obligations."

The C-130J Super Hercules Tactical Airlift Capability project is part of the "Canada First" procurements and represents just the beginning of a much larger government endeavour to revitalize Canada's defence capabilities. According to the Government of Canada, there are many more projects to come, each with a guaranteed 100-percent return on investment. Given the extensive capacity of Canadian industry, businesses from all regions of Canada are expected to benefit.

Organisations in Quebec include, but are not limited to, the following:

Heroux Devtek - C-130J Landing Gear Assemblies

CAE - C-130 Training Devices and Simulators

Avro Tools - Aerospace Assembly Tools and Accessories

Rolls-Royce Canada - Enhancement of Repair Activity at Rolls-Royce Canada

CEL Aerospace - Aircraft Engine Test Cells and Equipment

The C-130J generates much greater operational efficiency than the older C-130s, such as Canada's E and H model, by flying further, faster, with more payload and higher reliability. C-130Js are currently deployed in several theatres and are operating at a very high tempo efficiently and reliably. C-130Js are being used daily for troop and equipment re-supply via ground delivery and airdrop, for air-to-air refuelling, ground refuelling and humanitarian relief.

With deliveries beginning in 2010 and all 17 aircraft delivered by 2013, Canada joins the growing number of nations with C-130J fleets - allied operators include the United States, the United Kingdom, Australia, Italy, Denmark and Norway. As of September 2007, a total of 196 C-130Js were on order, with 156 delivered.

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