Clement woos aerospace investors at Farnborough

Industry Minister Tony Clement is seeking to drum up support for Canada’s $26 billion aerospace industry at the U.K’s Farnborough International Air Show, where Canadian firms are expected to announce major new orders.

Clement will be meeting with key aerospace investors to promote the innovations and technological capabilities of Canadian Business, Industry Canada said in a release.

In a speech officially opening the show’s Canada pavilion, Clement said the government wants to position Canadian firms as the suppliers of choice to major aircraft platforms.

"Canadian aerospace companies are among the world leaders in the industry," said Minister Clement. "Their strength and technological capabilities make them key partners on major global platforms. These capabilities also demonstrate why Canada is an excellent location to establish a North American presence."

Heroux-Devtek and Pratt & Whitney Canada kicked off orders for Canadian companies at the week-long show, the world’s main showcase for the global aviation and aerospace industries. At the last show in 2008, companies placed a record number of new orders worth $88.7 billion. Farnborough alternates with Le Bourget in Paris to host the event.

“I would say the sentiment is cautiously optimistic and we’ve already seen a few nice orders, which were encouraging,” said Mario Longpre, national leader of the Aerospace and Defence Practice Group at PricewaterhouseCoopers. “Still, we’re not expecting the real recovery until 2011, 2012,” he said by phone from the U.K.

Longueuil, Quebec-based Pratt & Whitney on Monday said AgustaWestland has chosen its PW210 engine to power the new AW 169 helicopter. The company gave no financial details of the contract.

While Heroux-Devtek said it had two multi-year contracts worth more than $35 million from Triumph Aerostructures – Vought Aircraft.

The company’s Texas-based First Progressive unit will make aluminium wing ribs and other machined components for the Gulfstream 550 business jet and its Laval, Quebec facility will make landing gear-related equipment for the Boeing 737 program.

“The Gulfstream 550 contract perfectly illustrates the strategy of our aerostructure products operations to enhance customer diversification and improve balance between military and commercial business,” Gilles Labbé, president and chief executive officer of Héroux-Devtek.

Analysts are also expecting a rash of new orders for Bombardier’s C-Series jet.

Canada’s aerospace industry generates $23.6 billion in annual revenue and employs about 83,000 Canadians in 400 firms. The industry exports about 80% of its output and spends $1.3 billion on research and development, Industry Canada said.