P.E.I. aerospace firm gets $110M as Canada builds up defence sector

The U.S. Marine Corps' CH-53 helicopter is among the military aircraft MDS Coating works with. (MDS Coating)

SUMMERSIDE, P.E.I. - Ottawa has announced its biggest investment yet in P.E.I.’s aerospace sector, part of a broader push to strengthen Canada’s defence strategy and build more of the country’s industrial capacity at home.

The federal government is committing $55.7 million to MDS Coating Technologies, a P.E.I.-based company, which Industry Minister Melanie Joly said is “leading the world” in its field. The province is matching that with another $55 million, with the combined funding supporting new advanced manufacturing equipment, a 50,000-square-foot expansion and up to 120 new skilled jobs, doubling its workforce.

“It’s a big investment, but it’s totally worth it,” Joly said Wednesday.

The funding comes as Canada works to reduce its reliance on trade with the U.S., protect jobs affected by tariffs and grow domestic manufacturing. It follows the launch of the Defence Industrial Strategy earlier this year, which includes the ambitious goal of creating 125,000 high-paying careers, increasing defence exports by 50 per cent and improving the readiness of Canada’s military fleets, including aerospace.

“Being here right now at a key facility that is key to the aerospace sector just makes sense,” Joly said, speaking to an audience of politicians, industry leaders and workers. “Whether it be in commercial aerospace or defence aerospace, they will all need what is made here.”

MDS supports global commercial aviation and defence clients with advanced coating technology that protects turbine engines, extends the life of parts, improves fuel efficiency, reduces maintenance costs and lowers environmental impact.

Adam Casey, vice-president of operations, said the company got its start in military applications.

“These coatings on helicopter engines can make those helicopters available when you need them and operate within the parameters you need,” Casey said. “I think that’s a critical component.”

He added that demand is growing as commercial and military aerospace expand, with existing engines staying in service longer and newer engines running hotter, increasing the need for coatings that protect parts and help engines operate efficiently.

Casey said the expansion will roll out in phases, with the company already ordering two new coating machines expected to arrive before the new year.

The province says the project represents the largest private-sector investment in P.E.I. history. Most of its $55-million contribution comes from a $45-million loan through Finance P.E.I., with the rest through provincial grant and labour rebate programs.

Premier Rob Lantz said the Island’s economy has long been built on agriculture, fisheries and tourism, but sectors such as aerospace, biotechnology, clean technology and advanced manufacturing are growing steadily.

“Today’s announcement shows what a small island is capable of when innovation, vision and strategic investment come together,” he said.

Earlier this year, P.E.I. announced plans to create a provincial defence advisory panel to help the Island identify more economic opportunities tied to Canada’s national security priorities.