Minister of Industry Announces $27-Million Repayable Contribution in the Development of Innovative Landing Gear Technologies

LONGUEUIL, Quebec, September 3, 2008 — The Honourable Jim Prentice, Minister of Industry, announced today a $27-million repayable contribution in Héroux Devtek Inc. for the research and development (R&D) of advanced landing gear technologies. The $77-million project will focus on improving the reliability and performance of landing gear systems, as well as reducing their impact on the environment.

"Across the country, Canada's aerospace and defence (A&D) industries are important innovators, creating economic and technological benefits for Canadians," said Minister Prentice. "Héroux Devtek is helping Canada put its best foot forward."

The project undertaken by Héroux Devtek, headquartered in Longueuil, Quebec, comprises several components. In addition to exploring materials and manufacturing processes that will improve the performance and reduce the environmental footprint of landing gear, the company will also develop landing gear components for the next generation of aircraft, such as in-flight monitoring and electronic systems. These technologies will make landing gear more secure and reliable, and will help to detect problems before they occur.

Héroux Devtek will also use this project to strengthen its design, development and integration capabilities to manufacture complete landing gear systems.

The investment for this project is being made through the Strategic Aerospace and Defence Initiative (SADI), which supports strategic industrial research and pre-competitive development projects in the aerospace, defence, space and security industries.

"We welcome this opportunity to partner with the federal government through SADI," said Gilles Labbé, President and CEO of Héroux Devtek. "This will enable us to enhance our design and manufacturing capabilities in order to more efficiently integrate landing gear components into complete systems. This will allow the company to expand its role as a supplier of fully integrated systems, in addition to being a supplier of components."

SADI is managed by the Industrial Technologies Office, a special operating agency of Industry Canada with a mandate to advance leading-edge R&D by Canadian industries.

For further information (media only), please contact:

Bill Rodgers
Director of Communications
Office of the Honourable Jim Prentice
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502

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Backgrounder
$27-million Repayable Investment in Innovative Landing Gear Technologies

The Government of Canada is making a repayable investment of $27 million in a $77-million project undertaken by Héroux Devtek Inc. for the industrial research and pre-competitive development of landing gear technologies.

This investment will help the company to develop and integrate new technologies into landing gear systems, design and manufacture. These technologies will increase the reliability of landing gear through the use of in-flight monitoring systems; improve their performance through electronic systems, known as fly-by-wire systems, and the use of new materials that reduce the weight of aircraft; and lessen their environmental impact through the reduction or elimination of harmful manufacturing products.

Héroux Devtek will also use this project to enhance its manufacturing capabilities in order to more efficiently integrate landing gear components into complete systems. This will allow the company to expand its role as a supplier of fully integrated systems, in addition to being a supplier of parts.

In addition to the technological and environmental benefits resulting from improved technologies for landing gear systems, this project will have a positive economic impact on the Montréal region. It will create highly skilled employment opportunities for engineers and will encourage collaboration within the landing gear supply chain.

Headquartered in Longueuil, Quebec, Héroux Devtek specializes in the design, development, manufacturing and repair of aerospace and industrial products. The company employs 1300 workers, including 1000 at its eight plants in Canada and 300 at its six plants in the United States.

The Strategic Aerospace and Defence Initiative (SADI), launched in April 2007, supports private sector industrial research and pre-competitive development in Canada's aerospace, defence, security and space industries through repayable investments. For more information about SADI, please visit the Industrial Technologies Office website.

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Backgrounder
Strategic Aerospace and Defence Initiative (SADI)

The Strategic Aerospace and Defence Initiative supports strategic industrial research and pre-competitive development projects in the aerospace, defence, space and security industries.

Launched on April 2, 2007, this new initiative was developed with three key objectives in mind:

• to encourage strategic research and development (R&D) that will result in innovation and excellence in new products and services
• to enhance the competitiveness of Canadian aerospace and defence (A&D) companies
• to foster collaboration among research institutes, universities, colleges and the private sector

By investing in strategic R&D projects, SADI contributes to the development of technologies that focus on next-generation products or services, build on Canadian strengths, and enable Canadian companies to participate in major platforms.

SADI is administered with high standards of transparency and accountability by the Industrial Technologies Office. All project applications undergo extensive evaluation using a clear and rigorous process with published assessment criteria. These criteria include the company's ability to achieve the stated objectives, the project's technology benefits, and the expected social and economic benefits.

All Canadians receive value from SADI's contributions through the technological and economic benefits that result from supported R&D projects. These benefits include spinoffs in diverse sectors of the economy, such as nanotechnology and information technology, as well as the development of collaborative partnerships with universities, colleges and research institutions. Contributions to R&D made through SADI will also contribute to high-quality employment opportunities, strengthen Canada's workforce with talented scientists, engineers and researchers, and leverage private sector investments in R&D.

Canada's A&D industries are recognized around the world for producing leading-edge products and services. Domestically, these industries are important economic drivers in all regions of the country and are collectively significant players in the development of Canada's knowledge-based economy. Among the world leaders, Canada's A&D industries offer competitive and innovative solutions and are backed by a highly skilled workforce.

The Industrial Technologies Office is a special operating agency of Industry Canada, with a mandate to advance leading-edge R&D by Canadian industries.