Tourism, Culture, Industry and Innovation
June 28, 2017
Provincial Government Announces $3 Million of Support for Force Multiplier Research and Development Project
To support the growth and diversification of one of the province’s innovation-driven businesses, the Provincial Government today announced $2.25 million over two fiscal years for a forgivable loan to PAL Aerospace to support its Force Multiplier project. The loan is forgivable contingent on the company achieving an employment target of 150 person years of employment over five years. An additional $750,000 in non-repayable funding is being provided by the Research & Development Corporation.
The Force Multiplier project involves modifying a Dash-8 aircraft to operate as a special mission aircraft. The aircraft will be used for domestic and international opportunities, including maritime surveillance. It will expand on PAL Aerospace’s current business model and build on its existing technologies.
The new project has a number of benefits for the province, including:
- The creation of new, long-term, high-paying and high-skilled jobs in the developing aerospace sector within the province;
- The enhancement and growth of new research and development opportunities resulting from a variety of new components and systems that will be installed by PAL Aerospace for the first time; and
- Continued diversification of the provincial economy.
The company has acquired a Dash-8 aircraft and is modifying and equipping it with intelligence, surveillance, and reconnaissance (ISR) components that will:
- Be available to customers on an interim or long-term lease;
- Serve as a marketing tool for PAL Aerospace’s capabilities;
- Support training and logistics activities for clients;
- Be capable of swapping payloads and components, making it desirable for a variety of clients; and
- Serve various roles for different levels of government and industry.
It is expected that the modified aircraft will be completed by November 2017, and making its debut at the Dubai Airshow. Over the long term, and based on market demand, it is envisioned that the company will create a fleet of four to six aircraft of this nature which will also result in added employment opportunities in the province. PAL Aerospace, along with its parent company, Exchange Income Corporation, is investing significantly in the Force Multiplier project.
Support for the Force Multiplier project advances commitments made in The Way Forward: A vision for sustainability and growth in Newfoundland and Labrador aimed at stimulating new business activity and creating new private sector jobs for residents throughout the province.
“PAL Aerospace is a leader in its field, and this project not only demonstrates another success story for the company, but also what can be achieved in the aerospace and defence industry in our province. Our government is committed to supporting diversification and growth of this industry, which in turn will foster creation of highly skilled, high paying jobs in Newfoundland and Labrador.”
Honourable Dwight Ball
Premier of Newfoundland and Labrador
“This project fosters innovation in the technology sector and will enable PAL Aerospace to further establish itself and the province as a leader of expertise in this area, expanding business activities between Atlantic Canada and international markets.”
Honourable Christopher Mitchelmore
Minister of Tourism, Culture, Industry and Innovation
“We are pleased with the investment in Force Multiplier and the future of PAL Aerospace by the Government of Newfoundland and Labrador. This industry leading on-demand intelligence, surveillance and reconnaissance special mission platform will create high-value jobs in the province and will fill a gap that has long existed in the global aerospace and defence market.”
Chief Executive Officer, PAL Group of Companies
“In 2016, Canada’s Aerospace industry, the leading industry in research and development in Canada, contributed close to $28B to GDP and 208,000 jobs in the Canadian economy, and directly generated $27.2B in revenues, all of which speaks to the tremendous economic opportunities in this sector. Companies like PAL Aerospace are pursuing those opportunities the global marketplace in land, marine, and air/space domains by demonstrating the use of technology innovation and application, and ACADA is very pleased to see this work supported by the province.”
Provincial Director, Atlantic Canada Aerospace and Defence Association
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PAL Aerospace - www.palaerospace.com
Office of the Premier
Tourism, Culture, Industry and Innovation
Atlantic Canada Aerospace and Defence Association
2017 06 28 10:50 a.m.