A $20-million, repayable interest-bearing provincial loan to Magellan Aerospace’s Bristol Aerospace division will enable the company to implement a strategic, multi-year expansion of its Winnipeg facility estimated at $120 million, Premier Gary Doer announced today.
When finalized, Magellan will use the repayable loan to acquire new advanced composite manufacturing technologies to support work on the United States Joint Strike Fighter project as well as future commercial contracts.
“In addition to complementing the significant composite manufacturing capabilities in use by Manitoba companies today, these new aerospace technologies will provide Magellan Aerospace a competitive edge in acquiring future commercial work,” said Doer.
The provincial financing is in support of a multi-year investment by Magellan estimated at $120 million. This investment will have an impact of up to 100 jobs in Winnipeg.
The repayable loan to Magellan will be issued from the Manitoba Industrial Opportunities Program (MIOP) and is comparable in scope to the loan provided to New Flyer Industries in 2002 which was completely repaid three years later and helped the company successfully restructure its operations, the premier said.
The Joint Strike Fighter is a game-changing, once-in-a generation program that will bring Magellan’s technical expertise in composites and assemblies to a new level. Investment in technology development is the type of support required for the industry to take full advantage of meaningful growth opportunities as they arise.
Established in 1930, Bristol Aerospace currently employs 675 people. Each year, the aerospace industry generates over $1.6 billion for the Manitoba economy and employs over 5,100 Manitobans.
Financing for the projects comes from a secured, interest-bearing, repayable MIOP loan.
UNITED STATES JOINT STRIKE FIGHTER (JSF) PROJECT
With estimated revenues in excess of $250 to 300 billion over 25 years, the Joint Strike Fighter program will develop and manufacture the next generation fighter aircraft for the U.S. Navy, Air Force and Marines and for export to U.S. allies. In 2001 the U.S. Department of Defense named the Lockheed Martin JSF team as the winner of the contract to develop the F-35 Joint Strike Fighter. Lockheed Martin in Fort Worth, Texas, is the F-35 prime contractor while Northrop-Grumman in El Segundo, Calif., and BAE Systems (British Aerospace) in Samelsbury, U.K. are principal partners in the project.