The aerospace division of Japanese automaker Mitsubishi will invest up to $ 135 million in Boisbriand in a new research and development center that will ultimately create 250 new jobs in the Montreal area.
The management of the Japanese group made the announcement on Thursday with Quebec Premier François Legault and his Minister of the Economy, Pierre Fitzgibbon.
The new SpaceJet center in Montreal will be mandated to support the design and certification of SpaceJet regional aircraft manufactured by Mitsubishi Aircraft.
According to Alex Bellamy, director of product development at Mitsubishi Aircraft Corporation, a hundred jobs will be created in the first year at the company’s new facility in Boisbriand. The rest of the hiring will be done in the following years.
Our [Montréal area] facility reinforces our presence in the world’s leading aerospace centers. […] For us, Quebec is an obvious choice.
Alex Bellamy, Director of Product Development at Mitsubishi Aircraft Corporation
For François Legault, the arrival of Mitsubishi Aircraft Corporation in Quebec is another demonstration of Quebec’s undeniable expertise in the aeronautical industry.
Research and innovation in the aerospace industry are vital to our economy and are the pride of Quebec.
François Legault, Premier of Quebec
What’s more, the Prime Minister said in a statement, the arrival of the Japanese automaker in Montreal will open the Quebec supply chain access to the large family of SpaceJet products and generate paying jobs by creating an effect of training in the Quebec aerospace industry.
A new form of loan
To help the company gain a foothold in the city, the Legault government granted it a $12 million interest-free loan through the Investissement Québec subsidiary.
Under a new concept put in place by Quebec, if Mitsubishi creates the jobs promised, its loan can be repaid from the cash inflows generated by the taxes that new employees will pay, said François Legault.
The taxes paid by the workers will therefore be used to repay the loan, rather than direct payments by Mitsubishi to Investissement Québec. The Prime Minister wants this new funding structure to be used to attract more private investment in Quebec.
Quebec has a wealth gap compared to other provinces, the Prime Minister recalled the importance of private investment in Quebec and praised the quality jobs that Mitsubishi is about to create.
“It’s worth it to help companies that are committed to creating better paid jobs, so jobs where employees will pay more taxes with pleasure, I am sure, to the Quebec government,” added Mr. Legault, a smile in his voice.
For Hubert Bolduc, CEO of the Montréal international agency, who accompanied the company in its project to set up shop in Quebec, the arrival of another big player from the international aerospace industry “consolidates Montreal’s position as one of the major global centers of aerospace “.
The Japanese group’s interest in Quebec’s aerospace industry is not new. Last June, Mitsubishi Aircraft acquired Bombardier’s CRJ regional aircraft program for $550 million, plus $200 million to cover liabilities accumulated by the CRJ program.
Kajal Khatri is one of our senior news editors. Kajal graduated from IGNOU in 2010 with a degree in Business Management. She likes social media trends, being semi-healthy, and trying new foods. When she isn’t writing, Kajal loves to travel. She recently visited NYC in America.