The federal government announced a $27-million "repayable contribution" to Heroux Devtek Inc. in support of a $77-million project to develop advanced landing gear technology.
The six-year investment through the federal Strategic Aerospace and Defence Initiative will become gradually repayable one year after the completion of the project, the Montreal-based company and Industry Minister Jim Prentice said Wednesday.
The aerospace and industrial products manufacturer said its project will explore materials and processes "to improve the performance and reduce the environmental footprint of landing gear," and will develop components for future aircraft such as in-flight monitoring and electronic systems.
"We have committed about four per cent of our annual revenues to the development of new products and technologies," said Heroux-Devtek CEO Gilles Labbe.
"This has helped us win three new major landing gear programs over the past 15 months alone."
The project will have a positive economic impact on both the metropolitan Montreal and Kitchener, Ont., regions where Heroux-Devtek has manufacturing facilities, the company said. It has 1,000 workers at eight plants in Canada and 300 people at six U.S. locations.
"Across the country, Canada's aerospace and defence industries are important innovators, creating economic and technological benefits for Canadians," Mr. Prentice said in a release.
The Strategic Aerospace and Defence Initiative was launched in April 2007 to encourage research and development and increase the competitiveness of Canadian aerospace and defence enterprises.