Features Military Procurements
Helicopter purchase lands important work in Canada

Sept. 24, 2009, Burlington, Ont. – The Honourable Tony Clement, Minister of Industry, today announced that The Boeing Company has signed an agreement with L-3 Wescam Inc. to manufacture mechanical parts in support of Boeing CH-147 Chinook cargo helicopters, including 15 purchased by the Government of Canada for the Canadian Forces.

The Boeing CH-147 Chinook aircraft is part of the government's implementation of its Canada First Defence Strategy. Due to Industrial Regional Benefits (IRB) requirements in the $1.2-billion CH-147 acquisition contract previously announced, Boeing will be re-investing at least the full contract amount into the Canadian economy, creating jobs and stimulating regional markets.

"L-3 Wescam's work in the Chinook demonstrates how Canada's IRB Policy can work with the Canada First Defence Strategy to draw significant investments to our economy and create high-quality local jobs," said Minister Clement. "The projects from this contract will help advance the capabilities of Canadian aerospace companies."

At the same event, the Minister also announced a series of improvements to Canada's IRB Policy and some examples of how aerospace companies across Canada benefit from it.

The improvements to the IRB Policy will promote Canadian firms' participation in global value chains while continuing to generate maximum benefits to Canadian industry. They will attract substantive investments, global product mandates and world-leading research and development activities to Canada. The changes will also help focus IRB proposals on high-skill, high-technology areas with support for small and medium-sized businesses.

"Today's announcement is one of many examples of how the IRB Policy will improve Canadian firms' access to the global value chains of high-value products being sold in global markets," said Minister Clement. "Improvements to this policy will provide Canada with the opportunity for additional investments in our aerospace and defence sector."

The IRB Policy is an important element of the Government of Canada's overall procurement process for major defence and security purchases. It enables the government to leverage major investments in military equipment to encourage long-term industrial development and significant economic activity here in Canada. These improvements are being made in recognition of ongoing changes and opportunities resulting from the increased volume of defence procurement from the Canada First Defence Strategy.

Businesses from all regions of Canada are benefiting from this major Canada First procurement and are expected to benefit further from the government's other aerospace initiatives.