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B.C. aerospace companies to benefit from Boeing contract

Boeing's P-8A Poseidon contract creates takeoff opportunities for B.C. aerospace industry
The Canadian Air Force has ordered 14 P-8A Poseidon aircraft.

Several companies with manufacturing and assembly plants in Canada, including in B.C., will benefit from a $4.6 billion (US$3.4 billion) contract awarded to Boeing (NYSE: BA) to build 14 new P-8A Poseidon aircraft for the Canadian Air Force and three for the German Navy.

The P-8A Poseidon is a maritime and reconnaissance aircraft with anti-submarine and anti-surface warfare capabilities.

The 14 Poseidons that Canada has ordered are to replace Canada’s CP-140 Aurora maritime patrol aircraft. The cost of the Poseidon acquisition program is an estimated $10.4 billion.

Boeing expects to deliver the first P-8A Poseidon to Canada in 2026.

“With the P-8 acquisition, Boeing’s economic commitments to Canada have the potential to generate annual benefits of more than 3,000 jobs for Canadian industry and value-chain partners, and at least $358 million to Canada’s gross domestic product over a 10-year period,” Boeing said in a news release.

As BIV reported last year, when the Poseiden aquisition plan was first announced, Boeing expects to spend $2.5 billion in Western Canada, about $920 million of  which would be spent in B.C

Companies in Canada to benefit from contracts under the Poseidon building project include CAE, GE Aviation Canada, IMP Aerospace & Defence, KF Aerospace, Honeywell Aerospace Canada, Raytheon Canada, and StandardAero.

Some of these companies, including KF Aerospace, CAE and StandardAero, have maintenance or manufacturing or assembly plants in B.C. Last year, KF Aerospace Kelowna received an award from Boeing as a top supplier.

The new fleet of surveillance planes will be based in B.C. at 19 Wing Comox and in Nova Scotia at 14 Wing Greenwood.

KF Aerospace in Kelowna will be providing maintenance for the new Poseidons, said Matt Stone, communications director for KF Aerospace. He added that the company has worked with Boeing in the past, but only on civilian contracts.

"This is our first time partnering with them on a defence-related program, so this is really going to get our foot in the door with more opportunities for defence programs," Stone said.