MIDLAND (ON) - The Honourable Art Eggleton, Minister of National Defence, today announced the extension of a subcontract to Elcan Optical Technologies for the supply of day and night sights, laser range finder telescopes and thermal sight telescopes for the new Canadian Forces 8x8 armoured personnel carrier (APC) LAV III vehicle.
"The extension of this subcontract brings Elcan's total contract value to $32.9 million and provides work through the year 2000," said Mr. Eggleton. "Elcan, like many other industries across Canada, ensures that this Canadian Forces vehicle will be well equipped and top of the line."
"This is good news for both the Midland region and the Canadian Forces," said Mr. Paul DeVillers, Member of Parliament for Simcoe North. "With it, the number of employees currently working in the plant will be maintained at 600, which will help contribute to the economic and industrial growth of the area."
The federal government announced the decision to buy new APCs for the Canadian Forces on August 16, 1995. In January 1997, the Government awarded a $552-million contract to Diesel Division, General Motors of Canada Ltd. to build 240 APCs. In 1998 and 1999, options were used to order a total of 240 additional vehicles, bringing the total cost of the project to $ 1,659 billion.
Established in 1952, Elcan has evolved into one of the world's leading suppliers for precision optics. A division of Raytheon Systems Company, Elcan specializes in the design and manufacture of complex, precision opto-mechanical and electro-optical systems and subsystems for the commercial, medical, industrial and defence markets.
Diesel Division, General Motors of Canada Ltd., which let the subcontract, was established in 1949 as a manufacturer of diesel-electric freight and passenger locomotives. Today, it is a major designer and manufacturer of armoured vehicles for Canada and the armed forces of other countries. It employs about 2,700 people at its major assembly facilities in London, Ontario.
Funding for this project was provided for in the February 1999 federal budget and is therefore built into the existing fiscal framework. This announcement is an example of how the government is prioritizing its spending so that it can better serve Canadians by making efficient use of their tax dollars.
