Canadian firms earn $175M in C-130J deals

OTTAWA, Jan. 29 (UPI) -- Lockheed Martin has given Canadian firms $175 million in contracts for work on the C-130J military transport aircraft.

Lockheed Martin said in a statement Monday that it had "announced initial contract commitments to companies in Ontario that will lead to placing work with at least $175 million of Canadian content value in the region. These commitments are a result of the company's industrial benefits obligation to Canada arising from the government's purchase of 17 C‑130J Super Hercules aircraft, and stands as a testament to the quality of the high technology industry in this region."

The announcement "is one of four regional announcements which combined will total the first 60 percent of the industrial benefits obligation under the contract. Lockheed Martin will continue to work closely with Industry Canada and Regional Development Agencies to identify Canadian capabilities for the remaining 40 percent," the company said.

"The addition of the C-130J program will allow us to build on what we are already doing in Canada. It is a tremendous opportunity to strengthen existing relationships in Canada, develop new ones, and work together to enhance the capabilities and expertise of Canadian industry," said Ross Reynolds, Lockheed Martin vice president of C-130 programs.

"Lockheed Martin has worked with more than 300 Canadian companies across all regions providing them with contracts worth more than $266 million in the last two years alone -- outside industrial benefits obligations," Reynolds said.

"The C-130J Super Hercules Tactical Airlift Capability project is part of the 'Canada First' procurements and represents just the beginning of a much larger government endeavor to revitalize Canada's defense capabilities. According to the government of Canada, there are many more projects to come, each with a guaranteed 100-percent return on investment," Lockheed Martin said.