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Canada Contracts Magellan For Cormorant Work (Nov.23)

;FORT ERIE (ON) ­ Mr. John Maloney, the Parliamentary Secretary to the Minister of Justice and Attorney General of Canada and Member of Parliament for Erie-Lincoln, on behalf of the Honourable Art Eggleton, Minister of National Defence, announced today that a $9.7 million subcontract has been awarded to Fleet Industries Limited to manufacture the lower forward fuselage, a primary structural component, for the Cormorant Helicopter. Based in Fort Erie (Ontario), Fleet Industries Limited is an operating unit of Magellan Aerospace Corporation.

"The significant contract announced today demonstrates how the Government of Canada's decision to purchase the Cormorant Helicopter is leading to important international business opportunities for aerospace companies right here at home," said Mr. Maloney.

In its 1994 Defence White Paper, the Government pledged to replace the existing search and rescue fleet of Labradors with new, affordable, off-the-shelf helicopters. While the primary objective of the project is still to secure operationally sound equipment at a price Canadians can afford, industrial and regional benefits (IRBs) were also part of the selection process. In Team Cormorant's case, it has committed IRBs of approximately $630 million to all regions of Canada over eight years.

The first two Cormorant helicopters are on the production line and will enter service in February 2001. The Canadian Forces ordered a total of 15 helicopters.

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.


National Defence Announces a Team CormorantSubcontract to Magellan Aerospace Limited