Québec’s new aerospace hub just locked in a pretty big-name tenant.
Driving the news: Boeing is contributing $240 million to a new aerospace innovation zone in the Montréal area, a hub where it will also become the anchor tenant. The investment will support multiple projects, including electric flying prototypes and advanced landing gear.
- The move expands Boeing’s significant presence in Canada, where it already works with over 560 different suppliers.
Catch-up: Last November, Canada cut a deal with the U.S. to supply the Royal Canadian Air Force with 16 of Boeing’s Poseidon military planes. As part of the $5.9 billion pact, Boeing agreed to invest in more Canadian enterprises.
Why it matters: Canada is the second-biggest contributor to Boeing’s supply chain, trailing only Japan. The company’s continued investment in Canada is a big deal not just to the aerospace industry but to the economy as a whole.
- Over the next decade, Boeing is expected to contribute US$358 million annually to Canada’s GDP and add 3,000 jobs.
Zoom out: Canadian manufacturers will be a big part of Boeing’s efforts to play catch up as it works its way through a backlog of orders that piled up during its high-profile safety saga.—LA