Government of Canada invests in aeronautics sector with support for Canadian Materials Testing Bureau Inc.

News release

Government of Canada grants $174,000 in financial assistance to support the expansion of the Canadian Materials Testing Bureau (CMTB) and help Quebec’s aerospace sector to recover.

Montréal, Quebec, May 23, 2023Canada Economic Development for Quebec Regions (CED)

Supporting the aerospace industry, an essential component of our economy, is a priority of the Government of Canada. That is why Soraya Martinez Ferrada, Member of Parliament for Hochelaga and Parliamentary Secretary to the Minister of Housing and Diversity and Inclusion (Housing), today announced, on behalf of the Honourable Pascale St‑Onge, Minister of Sport and Minister responsible for CED, a repayable contribution of $174,000 for the CMTB.

This CED support, provided under the Aerospace Regional Recovery Initiative (ARRI), will enable the SME to meet the needs of Quebec and international aerospace manufacturers and increase the industry’s capacity in the context of growing global volumes.

The CMTB is a value-added services business founded in 2020. In existence since 1991 as a laboratory within X-Per-X Inc., and then SGS Canada Inc. starting in 2005, the CMTB became an independent business at the start of the pandemic. As SGS Canada was planning its closure, laboratory head Amir Ershad Fanaei decided to purchase the assets in order to maintain the eight jobs in existence and pursue operations. The CMTB offers a complete range of laboratory services in metallurgy, particularly for manufacturing businesses.

Due to its very high safety demands and resulting certification requirements, the aeronautics industry needs significant capacity to test the different materials and components it produces. The SME has targeted two niches where the current testing capacity in Quebec is insufficient, and even non‑existent: Hydrogen embrittlement tests and composite materials tests. The aim of CED’s assistance is to enable the CMTB to acquire the required equipment and certifications to conduct these tests, as well as market these new services at major industry conferences.

Aerospace is a pillar of the economy and of innovation in Canada. It is one of the most research‑intensive and export-focused manufacturing industries, employing over 230,000 highly qualified people across the country. The aerospace sector is essential to the economic development of communities and businesses from coast to coast to coast. The Government of Canada is committed to supporting businesses within Canada’s aerospace sector by helping them adopt sustainable environmental practices and seize opportunities to contribute to the country’s future growth.

Quotes

“By investing in improved processes at the CMTB to meet the needs of aeronautics businesses, our government is following through on its commitments to build a stronger, more resilient, and more inclusive economy. I would, in fact, like to highlight Mr. Ershad Fanaei’s remarkable tenacity; right in the middle of the pandemic, he risked everything to acquire the business and save its employees’ jobs. With his background as an immigrant and the entrepreneurial path he has chosen, he is a perfect example of our rich diversity and how it plays such an instrumental role in our country’s economic prosperity.”

Soraya Martinez Ferrada, Member of Parliament for Hochelaga and Parliamentary Secretary to the Minister of Housing and Diversity and Inclusion (Housing)

“Small and medium-sized aerospace businesses have a central role to play in the country’s economic vitality, as we see with the CMTB. Government of Canada support is key for the hundreds of thousands of workers this sector employs and for the good jobs it generates, which strengthen our regions’ economic fabric; it also helps the industry remain competitive internationally in a context of growing demand. I am delighted with CED’s support for this thriving SME’s project, which will boost growth in Quebec’s aerospace sector.”

The Honourable Pascale St‑Onge, Member of Parliament for Brome–Missisquoi, Minister of Sport and Minister responsible for CED

“I am very proud of the CMTB’s high-quality technical team. We will soon become one of Quebec’s top private laboratories offering metal and composite materials testing for the aeronautics industry. This new strategic capability will also enable homegrown businesses to no longer have to go outside Canada for NADCAP-accredited testing. These additional skills are the result of our strategic vision and will help support our growth in the coming years.”

Amir Ershad Fanaei, Chief Executive Officer, Canadian Materials Testing Bureau Inc.

Quick facts

  • This announcement is part of Economic Development Week.
  • The many investments announced by the regional development agencies (RDAs) in projects that contribute to community vitality demonstrate the importance of economic development right across the country.
  • The funds have been granted under the Aerospace Regional Recovery Initiative (ARRI). Delivered by Canada’s regional development agencies (RDAs) with a national budget of $250 million over three years, the ARRI complements other measures announced in Canada’s COVID-19 Economic Response Plan. It is part of a global Government of Canada strategy that includes measures being implemented by Innovation, Science and Economic Development Canada to boost the aerospace industry.
  • CED is a key federal partner in Quebec’s regional economic development. With its 12 regional business offices, CED accompanies businesses, supporting organizations and all regions across Quebec into tomorrow’s economy.

Associated links

Information

Media Relations
Canada Economic Development for Quebec Regions
media@dec-ced.gc.ca

Ariane Joazard‑Bélizaire
Press Secretary
Office of the Minister of Sport and Minister responsible for Canada Economic Development for Quebec Regions
ariane.joazard-belizaire@pch.gc.ca

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