NEWS

Pratt & Whitney jet engine plants get $300M in federal investment

12/08/2014 09:54 EST | Updated 02/07/2015 05:59 EST
Two Pratt & Whitney plants that build jet engines will receive $300 million in tax incentives and subsidies from the federal government.

Industry Minister James Moore announced the funding at the company's facilities in Mississauga, just west of Toronto. At the same time, Infrastructure Minister Denis Lebel made a similar announcement at the Longueuil, Que., facility on the other side of the river from Montreal.

The Ottawa funding will help the company develop the next generation of environmentally conscious jet engines, Moore said.

"Our government is proud to make smart investments that support high-quality jobs across the country," the minister added.

The funds will support 1,500 jobs across both facilities, the government said in a release, but will also help another 1,200 other companies along the supply chain, Moore said.

The funds will take the form of a repayable contribution through the government's Strategic Aerospace and Defence Initiative. That means the funds could theoretically prove to be a loan to be paid back, as that program requires any eligible projects to "clearly demonstrate that the applicant has, or can reasonably be expected to obtain, the financial resources to complete the project and repay the Crown."

Pratt & Whitney has been building jet engines in Canada since 1928 and employs more than 6,000 in Canada.

In a release, the government said Pratt & Whitney has invested more than $10.6 billion of its own money in research and development since 1982. But a Fraser Institute study last year found that Pratt & Whitney had received more than $3.3 billion in Canadian government subsidies in inflation-adjusted terms over five decades, more than any other company.

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