A U.S. Navy Boeing P-8A Poseidon maritime patrol aircraft in a file photo taken on Sept. 23, 2017.Darrin Zammit Lupi/Reuters
Boeing Co. will spend $240-million on initiatives to bolster Quebec aerospace innovation as the U.S. industrial giant makes good on local investment commitments after winning a sole-source contract from the Canadian government for military surveillance planes last fall.
The jet maker said Tuesday it has earmarked $110-million for a new aerospace centre in the Montreal area. The site is expected to conduct research and development in collaboration with local companies and academic institutions.
Boeing said it will also invest $95-million to help subsidiary Wisk Aero, which already has an engineering hub in Montreal, develop its electric air taxis. Finally, it is pledging $35-million to help local landing gear maker Héroux-Devtek advance its product research.
The federal government announced last November it would spend $10.4-billion on a new fleet of Boeing maritime patrol aircraft, a sole-source purchase that will replace Canada’s aging surveillance planes amid rising threats in the Arctic and elsewhere. The government signed on for 14 Boeing P-8A Poseidon aircraft, with an option for two more. The first deliveries are expected in 2026.
Federal officials said at the time that Boeing had committed to investing an equivalent of $5.4-billion in Canada over 10 years, part of an “industrial and technological benefits commitment” to the country tied to winning the military deal. Canadian suppliers for the Poseidon aircraft include GE Aviation Canada and CAE Inc.
Boeing’s news Tuesday dovetailed with an announcement by the Quebec government that it is creating a new economic innovation zone for the aerospace industry. It’s the fourth such zone in the province, following the “energy transition valley” that stretches from Bécancour to Shawinigan, Sherbrooke’s quantum science focus and Bromont’s intelligent electronic systems.
The idea behind the zones is to bring companies, economic organizations and researchers specialized in one sector together to work on projects that will drive exports and investment, and ultimately yield commercial sales.