About $80 million of the funding will be spent to build three new production lines devoted to making high-tech components for the company's new PurePower engine, which recently powered the first flight of Bombardier's new CSeries jet. The company said the engine is known for its energy efficiency, fewer emissions and noise reduction.
"The uniqueproperties of the new materials used in key parts for our next generation of engines, as well as the extreme conditions to which these materials are subjected, inspired us to design new, fully integrated, ultra-efficient production lines," said Benoit Beaudoin, vice-president of operations at Pratt & Whitney on Monday.
The new production lines are slated to open in 2015 using the lastest technology.
Pratt & Whitney Canada president John Saabas said the funding will modernize the company's infrastructure and "propel" the company into the future.
"We have facilities around the world... but really, we all looked, and the environment in Quebec and Canada made sure that this was the best place to invest," he said during a news conference.
The Quebec government is contributing $19 million towards the investment, which will preserve 166 jobs at the main plant in Longueuil, just south of Montreal, and develop a research and development centre.
Premier Pauline Marois said the project will contribute to Montreal's aerospace industry, which includes 200 companies employing 42,000 workers with $12.1 billion in annual revenues.
"With facilities in Longueuil, St-Hubert and Mirabel, Que., and its 5,000 employees, Pratt & Whitney is one of the jewels of Quebec and global aviation," she said at the announcement.
Industrial policy Minister Elaine Zakaib said discussions surrounding the grant began last January to help the company develop aerospace expertise.
Founded in 1928, Pratt & Whitney Canada is a subsidiary of U.S.-based United Technologies Corp. (TSX:UTX).