Lunenburg Company Wins Aerospace Contract
Composites Atlantic Limited -- a Lunenburg-based aerospace company -- has won a multi-million dollar contract to help manufacture a new aircraft.
The company expects to hire at least 50 more people over the life of the contract signed with a major North American aerospace manufacturer.
The provincial government helped Composites Atlantic land the contract by providing a $2.5-million loan to assist with product development, tooling and capital expansion. The company will also receive an employment incentive of up to $700,000 when it meets its target of hiring 50 more employees.
Economic Development Minister Kerry Morash said the province's economic growth strategy encourages investment in people, rural communities, and innovation.
"Composites Atlantic is building better products, at lower cost, and bringing them to new markets," the minister said. "That is what will keep this company, and this province, growing and gaining international investment and attention."
Company president and CEO Maurice Guitton and Composites' management team said the provincial investment was critical in winning the contract.
"Major original equipment manufacturers are rushing to develop new fuel-efficient aircraft -- made out of lighter, stronger materials," said Mr. Guitton. "The manufacturers who win the contracts for these aircraft are those who can research and develop high-quality composites quickly.
"Our people and our technology are helping us outsmart our competitors," Mr. Guitton added. "This provincial investment helps us outpace them and helps us meet training requirements."
Composites are light-weight, strong and corrosion-free and are increasingly replacing heavy metal in aerospace and defence industries. Composites, made up of resins and fibres, will make up 50 per cent of future aircraft.
The business case for the loan is based on the importance of the aerospace industry to Nova Scotia, the investment criteria in the economic growth strategy, the company's track record, and projected tax revenues generated by the contract.
Finance Minister Michael Baker said the people in Lunenburg County are building Nova Scotia's reputation as a leader in the aerospace industry.
"Congratulations for once again coming out ahead in a very competitive world market," Mr. Baker said. "Thanks to the smart thinkers and hard workers here in Lunenburg County, we once again are showing the world that a small community can make a very big difference."
About $3 million will be generated in direct and indirect tax revenues for the province over the life of the contract. The loan is also secured, and will be repaid with interest.
Composites Atlantic has grown from 10 employees in 1993 to 246 people today. The company expects annual revenues of $30 million in 2006. Provincewide, the aerospace and defence industry now employs more than 6,000 Nova Scotians and generates more than $600,000,000 in revenues.
Composites Atlantic has clients in the aircraft, space and defence industries around the world. Its products include de-icing systems for planes, a helium tank pressure vessel for space, and major composites components for aircraft (leading edges, radomes, fairings, etc.)
Composites Atlantic is co-owned by the province of Nova Scotia and EADS in Europe, the integrator of Airbus Aircraft in France, Germany and soon to be in Spain.