Quebec companies are beneficiaries of $660 million aerospace contracts which was announced by the Canadian federal government.

The money has been sanctioned by U.S. companies Boeing and Lockheed Martin, who were awarded two major contracts to build planes for the Canadian Forces. In exchange for the contracts, both companies have agreed to ultimately invest 100 per cent of the contract value back into the Canadian economy.

The military signed its deal with Boeing in early 2007 giving the company $1.5 billion to build and maintain four heavy-lift cargo planes. Lockheed Martin was awarded a $1.4-billion contract very recently to provide the military with 17 C-130J Super Hercules transport planes. It's also planning to buy four Boeing Globemaster C-17s.

Out of the $660 million in contracts announced, $420 million has come from Boeing and $240 million from Lockheed.

One of the major Quebec beneficiaries is RTI Claro, a company based in Laval, north of Montreal. Boeing has given RTI a $346-million contract to supply titanium and aluminum components for the company's 787 Dreamliner planes.

According to the Industry Minister Jim Prentice, the Canadian government was fulfilling two obligations, one was to rebuild the Canadian Forces, as is being done, insisting that 100 per cent of the value of equipment, machinery and planes that are purchased make their way through to investment in Canada.

The government said Boeing and Lockheed Martin would be announcing more contracts soon, and they would be assigned to companies in other regions across the country.

Atlantic companies are also to be awarded aerospace contracts

Atlantic Canada aerospace companies would also receive hundreds of millions of dollars in defence contracts which was as a result of a move to replace the military's Hercules transport aircraft, according to two federal cabinet ministers.

The announcement of funding to aerospace companies in Nova Scotia would be made by Defence Minister Peter MacKay and Industry Minister Jim Prentice.

According to government sources this was a spinoff from the purchase of the C-130s and the C-17s, and the investment that the manufacturers of those aircraft would make in Canada. The planes would eventually be delivered to the military for use in shipping cargo and troops over long distances.

As part of the original order, Boeing agreed to match the price of the four aircraft with dollar-for-dollar investments in Canada through a program co-ordinated by Industry Canada.

MacKay confirmed the announcement at IMP Aerospace in Halifax and would gradually involve a number of Atlantic Canadian companies.