Company Will Match Purchase Price By Reinvesting In Canadian
Industry
The Boeing Company announced Monday that it has received a
$1.15 billion contract from the Canadian government for 15 new
CH-47F Chinook heavy-lift helicopters. Under the contract, Boeing
will match Canada's purchase price by executing contracts and
investments of equal value with Canadian industry.
Designated the CH-147 in Canada, the Chinooks have been
contracted to meet Canada's Medium-to-Heavy Lift Helicopter program
requirements. They will be produced at the Boeing Rotorcraft
Systems facility in Ridley Township, Pa., with deliveries expected
to occur between 2013 and 2014.
Speaking Monday at an event hosted by the ministries of Defence
and Industry at the I.M.P. Aerospace facility in Halifax, Jack
Dougherty, Boeing vice president, H-47 Programs, said, "Boeing is
extremely pleased that Canada has selected the CH-147 Chinook, the
world's leading tandem-rotor helicopter, to modernize its defense
forces' airlift fleet.
CH 47 File Photo
"This is also great news for Canadian troops," Dougherty added.
"They are a national treasure, because they not only place
themselves in defense of Canada, but also are the heroes who are
called on in every manner of civil emergency."
The ceremony also included remarks from the Honorable Peter
MacKay, Canada's Minister of National Defence and Minister for the
Atlantic Gateway.
"This contract is key in ensuring the Canadian Forces are a
first-class, modern, flexible force capable of defending Canada and
the Canadian interest for years to come," MacKay said. "This
helicopter will give Canada's military a robust capability with the
ability to operate in remote and isolated areas, and increase their
capacity to respond to disasters both at home and abroad."
In line with Canada's Industrial & Regional Benefits policy,
Boeing will match every dollar spent by the Canadian government in
acquiring its CH-147 fleet by partnering with and issuing contracts
to companies in Canada. These opportunities will result in
long-term, high-value jobs for Canadians and build on the
long-standing partnership between Boeing and Canadian industry.
Contracts worth in excess of $500 million have been signed against
this commitment and are being implemented by companies across
Canada.
"This is a win-win for Canada and The Boeing Company," said Mark
Kronenberg, vice president of International Business Development
for Boeing Integrated Defense Systems. "Boeing seeks to partner
with the very best of industry, and as a result, we continue to
make a significant commitment to Canadian industry. This new
contract has created opportunities for new partnerships to further
grow our already large supplier base in Canada."
Along with the reinvestments Boeing will make as part of the
delivery contract, the company could provide additional industry
benefits in excess of $2 billion over 20 years for in-service
support of the CH-147 fleet. The performance-based in-service
support could include aircraft maintenance training systems and
services, engineering support, supply chain management, and other
expertise.
CH 47 File Photo
The CH-147, which will be modified to meet Canada's operational
environment, will be powered by two 4,733-horsepower Honeywell
engines and feature extended-range capabilities. It will be able to
transport more than 21,000 pounds (9,525 kg) of cargo.