Diamond to get federal help to build jet
Sat, February 16, 2008
It appears Diamond Aircraft will finally get the federal help it wants to build a new five-seat jet at its London plant.
Federal Industry Minister Jim Prentice has called a rare Saturday news conference today at the Diamond factory.
Prentice is to announce federal investment for research and development related to the new aircraft, known as the D-Jet, his department said in a release.
Just how much Ottawa will be ponying up, isn't clear.
Diamond has said production of the D-Jet would double the size of its plant near London airport, creating 500 new aerospace jobs in the city.
The D-Jet would put London in elite economic company, said Gerry Macartney, general manager of the London Chamber of Commerce. "It puts us on the world stage. There are very few communities in North American that produce jet aircraft." He added the D-Jet would help to diversify the city's economy.
Prentice's department wouldn't comment yesterday, and Elgin-Middlesex-London MP Joe Preston -- the city's only federal government backbencher -- wasn't available.
Diamond has already tested prototypes of the jet, expected to sell for $1.4 million US.
As of last fall, Diamond had more 300 orders for the jet.
Diamond is based in Austria but does more than $100 million in sales a year from aircraft manufactured in London.
Prentice's announcement, 10 days before the minority Conservative government brings down its third budget, comes amid growing political cries for Ottawa to help Ontario manufacturers, hard-hit by the soaring Canadian dollar and the weakening U.S. economy.
The D-Jet development program, testing and bringing the plane to market, is expected to cost more than $100 million.
Diamond hasn't said how much it wants from Ottawa but Industry Canada will fund up to 30 per cent of a research and development project.
Diamond received a $10-million commitment from the Ontario government in 2006 to develop technology for the jet.
Last March, the province added another $1 million to train workers.
Since then, Diamond officials say they've been waiting for a federal commitment before making a final decision on where to build the aircraft.
Diamond President Peter Maurer wasn't available for comment yesterday, but has said while Diamond wants to build the D-Jet in London, it has been courted by Montreal's economic development office and cities in the United States.
The London plant manufactures DA-42 twin-engine, four-seater aircraft; DA-40, single-engine, four-seater aircraft and DA-20, two-seater aircraft.
London International Airport Steve Baker president declined comment but said he looks forward to today's announcement.
"We have been working on this for many years and this will be positive announcement," he said.
After more than a year of waiting, Macartney said the federal announcement will be cause for relief and celebration.
"It's been a long-time coming but patience pays," he said.