News Release Archive
ECONOMIC DEVELOPMENT/TOURISM--AIRCRAFT ENGINES TO BE BUILT-DEBERT
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Orenda Aerospace Corp., a subsidiary of Magellan Aerospace Corp.,
is landing at the Debert airport.
A new company called Orenda Recip Inc. is setting up an aircraft
engine development and manufacturing facility at the former
Canadian Forces station in Debert, Nova Scotia Premier John
Savage and Cumberland-Colchester MP Dianne Brushett announced
today in Truro.
In addition to the 110 people Orenda Recip will employ at Debert,
another 325 supplier jobs will be created over the next five
years.
Orenda will develop a high-performance reciprocating engine for
use in civilian aircraft. The engine will fill a gap in the
market between existing piston engines and small gas turbines.
Three levels of government are entering into a partnership with
Orenda Aerospace Corp. on the $32.5-million project. Orenda's
investment in the project will exceed $14 million. The Nova
Scotia government, through Economic Development and Tourism, will
make a $9.3-million repayable investment, while Industry Canada,
through Technology Partnerships Canada, will make an $8.4-million
repayable investment. The Colchester Park Development Society
will contribute a $400,000 loan toward improvements at the Debert
site.
"The job-creation benefits of this project are significant for
the people in this part of Nova Scotia," said Ms. Brushett, who
made the announcement on behalf of Industry Minister John Manley.
Added David Dingwall, federal regional minister: "Orenda will use
Atlantic Canada suppliers, enabling the region's aerospace
industry to grow in size and complexity. This defence conversion
project will build on Orenda's military engine expertise and will
add a new dimension to the aircraft industry in Canada."
Said Premier Savage: "Today, Colchester County is putting the
rest of the country on notice: rural Nova Scotia has what it
takes to attract high-technology jobs. We expect other companies
will follow Orenda's lead and discover the many economic, market
and lifestyle advantages of locating plants here."
Rich Neill, president of Magellan, said he is enthusiastic as
much by government's eagerness to see Orenda expand its
operations to Nova Scotia as by the market demand for the
engines.
"We at Magellan are extremely grateful for their support and for
their confidence in our newest product. Since we began developing
this power plant, the worldwide interest and demand has been, in
a word, incessant," said Neill.
"Already we have 140 engines on order, and once certificated, we
believe the OE-600 series will define an entirely new class of
aircraft. Moreover, the retrofit market on older airframes is
very large, and growing."
The Orenda engine will produce between 500 and 750 horsepower. At
present, there are no reciprocating engines producing more than
400 horsepower. Aircraft requiring more powerful engines must use
gas turbine engines costing considerably more than a
reciprocating engine.
"We're investing in Orenda, but we're also investing in people
and technology, and we expect to more than double our investment,
based on royalty payments and taxes," said Richie Mann, minister
of economic development and tourism. "Our funding parallels the
Technology Partnerships Canada model, where a longer-term
investment in technology earns greater returns for everyone."
Orenda Recip will soon begin hiring aerospace workers. The first
airframe to be modified for the engines is scheduled on site in
August. The facility will be fully operational by September, with
engine deliveries to begin in October. Twenty-three OE-600
engines are to be built this year and 150 next year.
Orenda Aerospace Corp., which celebrated its 50th birthday in
1996, manufactures, repairs and overhaul a wide array of turbine
engine components for GE Aircraft Engines, Pratt and Whitney
Canada, Rolls-Royce and AlliedSignal. Orenda Recip is a wholly
owned subsidiary of Orenda Aerospace, of Mississauga, Ont.
Magellan Aerospace is a publicly traded Canadian company whose
operations include Orenda, Fleet Industries, Aeronca, Inc.,
Middleton Aerospace and A-R Technologies. The company specializes
in the manufacture and overhaul of precision airframe and turbine
engine components and assemblies, in addition to its new
reciprocating engine program.
Technology Partnerships Canada is a central element of the
federal government's agenda to promote technological development
as a catalyst for economic growth and job creation, through
increased productivity and competitiveness. The program
represents an innovative investment approach to technology with
real risk and reward sharing with the private sector. Investments
are fully repayable and are intended to help ensure that products
with a high potential to stimulate economic growth and job
creation reach the marketplace.
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Contact: Rich Neill
Orenda Aerospace Corp.
905-677-3250
Bruce Stuart
Technology Partnerships Canada
613-941-4671
Linda Laffin
Nova Scotia Economic Development and Tourism
902-424-6810
trp Apr. 23, 1997 - 10:15 a.m.
