Boeing to invest C$240 mln in Canadian aerospace development

Boeing will invest a total of C$240 million ($176 million) in three Canadian aerospace development projects as part of an agreement to sell Poseidon military surveillance planes to Ottawa, the company said on Tuesday.

Canada and the United States reached a C$5.9 billion deal agreement last November for the purchase of up to 16 Poseidons and related equipment. As part of the agreement, Boeing agreed to invest in Canadian enterprises.

The C$240 million, to be spent in the province of Quebec, will be divided between an aerospace innovation zone, a center focusing on a four-seat air taxi and a firm researching advanced landing gear, Boeing said in a statement.

"These investments serve as a testament to Canada's aviation leadership and exemplify Boeing's unwavering commitment to the country," said Boeing Global president Brendan Nelson.

($1 = 1.3639 Canadian dollars)