Wings Magazine

Lockheed Martin commits $241M in Quebec

Jan. 22, 2008, Montreal - Lockheed Martin has announced initial contract commitments to companies in Quebec that will lead to placing work with at least $241M of Canadian content value in the region.

January 22, 2008  By Carey Fredericks

Jan. 22, 2008, Montreal – Lockheed Martin (NYSE: LMT) 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. Today's 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
        — CEL Aerospace – Aircraft Engine Test Cells & 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.
Headquartered in Bethesda, Md., Lockheed Martin employs over 140,000
people worldwide, including more than 500 Lockheed Martin Canada employees.
The corporation is principally engaged in the research, design, development,
manufacture, integration and sustainment of advanced technology systems,
products and services. The corporation reported 2006 sales of $39.6 billion.

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