OTTAWA, January 13, 2005 -- The Honourable Jean-C. Lapierre, Minister of Transport and political lieutenant for Quebec, and the Honourable Joe Volpe, Minister of Human Resources and Skills Development and Minister responsible for Ontario, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced a $207-million investment that will help sustain Pratt & Whitney Canada's position as a world leader in the small and medium gas turbine engine market. The investment will help ensure Canada's position as a leader in the highly competitive aerospace sector, and achieve its commitment to continued development and innovation within the aerospace industry. This investment is about capitalizing on innovation, and moving creative ideas through research and development toward commercialization, said Minister Emerson. It will also build new links between large and small companies, as well as research institutes and universities. Technology Partnerships Canada (TPC) will make this conditionally repayable investment to support a series of research and development initiatives under Pratt & Whitney Canada's Pre-Competitive Engine Technology Program and Advanced Capabilities and Technologies Program. The work will be an approximate 60/40 percent split between the company's two primary research and development facilities in Longueuil, Quebec, and Mississauga, Ontario but it will also benefit facilities in Nova Scotia and Alberta. Pratt & Whitney Canada has positioned Quebec as an internationally recognized centre for excellence in gas turbine engines, said Minister Lapierre. This investment will deliver benefits not only here in Quebec, but in all regions of the country. This investment recognizes our commitment to a highly skilled workforce and our industrial capacity, said Minister Volpe. Today, we are investing in the future of a proud company and an essential industry. These initiatives will help Pratt & Whitney Canada implement a robust research and development program for gas turbine engines. The work phase consists of the development, testing and validation of new components technologies used to power civil aircraft, as well as helicopters and other industrial applications. Additional work will be aimed at design validation and integration, as well as improving engine performance, reducing weight, reducing the environmental impacts of both the engine and the manufacturing processes and reducing the cost of ownership. This leading-edge program further enhances the already extensive collaborative arrangements that the company has with 16 Canadian universities by investing $11 million per year. Pratt & Whitney Canada hires a large number of the total Canadian graduating class of aerospace engineers each year, most of whom will work on this and similar programs. The investment is structured so that the Government of Canada will receive royalties based on the commercial success of the technologies supported by the research and development initiatives. Technology Partnerships Canada is a key instrument for advancing the commercialization of research and development. Working in partnership with innovative companies across Canada, TPC shares in the cost of private sector technology projects in aerospace and defence, in environmental technologies and in enabling technologies such as biotech and information and communications technologies. - 30 - For more information, please contact: Stéphanie Leblanc Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Irène Marcheterre Director of Communications Office of the Honourable Jean-C. Lapierre Minister of Transport (613) 991-0700 Stephen Heckbert Director of Communications Office of the Honourable Joe Volpe Minister of Human Resources and Skills Development (819) 994-2482 Media Relations Industry Canada (613) 943-2502 The news release and other documents are available on the Technology Partnerships Canada Web site at http://tpc.ic.gc.ca. BACKGROUNDER Government of Canada Investment in Pratt & Whitney Canada Technology Partnerships Canada (TPC) is making a strategic, conditionally repayable investment of $207 million in Pratt & Whitney Canada that will help position the company to meet the technological challenges set by today's competitive aerospace industry. This investment is part of Pratt & Whitney Canada's pre-competitive research and development program. The investment will be an approximate 60/40 percent split, directed to the two primary work locations in Longueuil, Quebec, and Mississauga, Ontario. The program consists of the integration and testing of new engine component technologies and the validation of related new concepts and/or processes. This undertaking will support the largest aerospace research and development initiative currently underway in Ontario. This project will enable Pratt & Whitney Canada to reduce its costs in engine development, production, and maintenance. The key technology drivers that are the focus of the pre-competitive development program include environmental impact, cost reduction, reduced engine development cycle time and design systems. The investment will be distributed among a number of separate initiatives under the company's Pre-Competitive Engine Technology Program and the Advanced Capabilities and Technologies Program. These initiatives encompass innovative research and development for gas turbine engines and are a continuation of the research and early development work conducted under previous Pratt & Whitney Canada projects supported by TPC. A key factor in Pratt & Whitney Canada's success has been the close links it has established with government research labs and university research facilities -- collaboration that is seen as a model within the industry for future innovative activity. The Government of Canada's support of Pratt & Whitney Canada, through TPC, will help Canada further its commitment to continued development and innovation within the aerospace and defence industries. With widespread applications across aerospace and throughout industry, these new technologies will benefit our economy while contributing to the further development of this vital national industry. Pratt & Whitney Canada is a world leader in the small and medium gas turbine engine market. It produces engines for general aviation, corporate aircraft, aircraft trainers, regional transport aircraft, helicopters and large auxiliary power units. As Canada's second-largest aerospace company, Pratt & Whitney Canada has more than 6500 employees located in St-Hubert, Quebec, Lethbridge, Alberta, Mississauga, Ontario, and Halifax, Nova Scotia, and its corporate headquarters in Longueuil, Quebec. Pratt & Whitney Canada is owned by United Technologies Corporation of Hartford, Connecticut, through its Canadian subsidiary United Technologies Canada Ltd. Technology Partnerships Canada is a key instrument for advancing the commercialization of research and development. Working in partnership with innovative companies across Canada, TPC shares in the cost of private sector technology projects in aerospace and defence, in environmental technologies and in enabling technologies, such as biotech and information and communications technologies. TPC's conditionally repayable investments in pre-commercialization of research and development are economy-driven and long-term in nature, often continuing for five to seven years. The majority of TPC projects are still in the research and development phase.
