Lockheed Martin commits $242M in Atlantic Canada
Jan. 22, 2008, Halifax - Lockheed Martin today announced initial contract commitments to companies in Atlantic Canada that will lead to placing work with at least $242 million of Canadian content value in the region.
Jan. 22, 2008, Halifax – Lockheed Martin [NYSE: LMT] today announced initial contract commitments to companies in Atlantic Canada that will lead to placing work with at least $242 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 ˆ 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 Atlantic Canada include, but are not limited to, the following:
– IMP Aerospace – P-3 Detail Parts & Assemblies, Towed Array Sonar Can Repair and Repair and Overhaul of P-3 Aircraft other than Canadian CP-140 Aircraft
– Northstar Network – P-3 Detail Parts & Assemblies
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 ˆ 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.