Boeing will spend $61M in B.C. as part of Canada's military planes contract

Mount Baker in Washington is seen in the distance as a WestJet Airlines Boeing 737 Max aircraft arrives at Vancouver International Airport in Richmond, B.C., on Jan. 21, 2021. Boeing Canada plans to invest $61 million in British Columbia for an aerospace manufacturing training facility and for research and development. THE CANADIAN PRESS/Darryl Dyck

British Columbia's first share of a multibillion-dollar deal between Ottawa and Boeing Canada to buy military planes includes promises for a new training facility focused on Indigenous workers, and more research and development out of the company's local office.

The American aviation giant has agreed to spend a total of $61 million in the province, including $13 million on Indigenous-owned COTA Aviation, based in Parksville, B.C., to establish an aerospace manufacturing training facility to train 10 workers a year.

National Defence Minister Bill Blair said the facility will be geared toward increasing the representation and participation of Indigenous people in aerospace and defence.

"Workers will be trained to operate modern and advanced manufacturing equipment, including robot automation, and COTA is going to assist Indigenous learners with work placement at the end of their program," he said at the announcement at Boeing's Richmond, B.C., offices on Wednesday.

COTA's CEO Kyle Kusznieryk said the money will also be used to purchase advanced manufacturing equipment to meet growing demand.

"The skills training program is intended to provide high-impact career jobs with minimal barriers. The program not only enhances our internal capabilities, but contributes to the broader development of the aerospace workforce," he said.

The federal government announced last year that it would buy as many as 16 Boeing P-8A Poseidon multi-mission surveillance planes to phase out the Aurora aircraft, which has been in service for more than 40 years.

The more than $10-billion agreement came with a promise from Boeing to provide $5.4 billion worth of business activities and investments in Canada over 10 years, which includes drawing on domestic suppliers and supporting 3,000 jobs.

Boeing also pledged to spend $48 million to build research and development capacity at its Richmond facility, part of what the company said was a requirement in the agreement to invest in growing its Canadian footprint.

Newly minted Boeing Canada president Al Meinzinger, who took on the position in June, said the expansion will increase research and development technology.

"They will provide project management tools, and they will build on analytics to optimize aircraft maintenance, sustainability and performance, both for crewed and un-crewed aircraft," he said.

Blair said Boeing's spending will benefit the aviation industry.

"The investments that Boeing is making here in this facility is going to create opportunities for Canadian innovation, for Canadian workers. It will contribute to the Canadian economy," he said.

"It is obviously mutually beneficial to Boeing, but there is real benefit, I think, to the Canadian workforce and to the aeronautics industry here in Canada."

Blair said Wednesday that more announcements as part of the agreement would be coming for B.C.

In April, Boeing announced it was investing $17 million in the Saskatchewan Aviation Learning Centre.

In May, it promised $240 million for a Quebec plan to become a global location for the development of drones and greener aircraft.

This report by The Canadian Press was first published Aug. 7, 2024.