Lockheed Martin Continues to Strengthen its Commitment to Canada

Lockheed Martin Canada, headquartered in Ottawa (Kanata), has opted to enhance its operations and presence in Canada, which will result in an increase in the hiring of skilled engineering, technical and manufacturing employees.

As a result of being awarded major contracts with the Canadian Navy, Lockheed Martin will create 200 new high tech jobs across Canada. In November 2008, the Lockheed Martin Canada-Led Team was awarded $2 billion worth of contracts for the installation, integration and long-term in-service support of a new combat system for Canada's Halifax-Class Frigates.

"Building on its 25-year legacy as the Canadian Navy's systems integrator, Lockheed Martin Canada's Halifax-Class Modernization (Combat Systems Integration) effort will result in an increase in the hiring of skilled engineering, technical and manufacturing employees at Lockheed Martin facilities in Montréal, Ottawa, Esquimalt and Halifax," said Tom Digan, President of Lockheed Martin Canada.

Lockheed Martin Canada, the original equipment manufacturer of the Halifax-class frigate's combat system, has been the vessel's combat system integrator for the past two decades. It is the prime contractor on the combat systems integration contract worth $1.4 billion. Under a separate contract worth $600 million, the company will be the prime contractor on in-service support of the modernised equipment on the frigates.

Why Canada?

Canada is truly a center of excellence in the defence and security sector. Canada's defence and security industries generate over $10 billion a year in sales, 50 percent of which are exported to international customers. The industries support 70,000 high-tech jobs in Canada and operate facilities in every province. With a long history of being at the forefront of technology, Canadian companies are competing successfully with the best in the world.

Canada is a launch pad for integrated systems using open architecture. Products, technologies and services developed in Canada are marketed worldwide through the corporation's global reach.

In addition to the pursuit of the Halifax Class Modernization Combat System Integration contract, Lockheed Martin's solution and technology will be marketed worldwide for naval command and control systems "Lockheed Martin's investment will provide the Canadian Navy with the most advanced technology in the world today and create excellent export opportunities for Canadian industry," said Digan. System development and maintenance will be performed at Lockheed Martin facilities in Montréal and Halifax.

Software-based systems of the type offered by Lockheed Martin are performing a vast number of tasks and functions, including performance and management of safety-critical and security-sensitive functions on-board aircraft and ships in an increasingly integrated systems environment; intelligent and knowledge-based systems that convert data into information and decision-making. Examples include on-board sensor systems and prognostics and health management; increased adoption of Commercial Off-The-Shelf (COTS) or COTS-derived protocols and systems for high bandwidth data communications networks and wireless functionality; as well as systems used to perform various simulation functions, notably in training, modelling of operational scenarios and product development.

Lockheed Martin has found fertile grounds in the Canadian government's sophisticated approach to technology and procurement policies, of availability of specialized personnel for its sophisticated research, systems and IT operations, of effective collaboration with universities and other educational institutions, of favourable corporate tax rates as well as R&D tax incentives, and in terms of the favourable images of Canada worldwide.

In the fall of 2008, the Canadian Government made it clear that Canada will leverage increases in defence procurement to ensure that new high-technology jobs are created in Canada through a combination of buying Canadian-made defence equipment and securing high-value industrial benefits when equipment is purchases abroad. Through the Canada First Defence Strategy, the Canadian Government has committed to invest $240 billion in capital and non-personnel related defence materials over the next 20 years. These policies will ensure that Canadian defence and security industry continues to be among the high-tech leaders worldwide.

Other Government programs like the Industrial and Regional Benefits Program, the Strategic Aerospace and Defence Initiative, the federal science and technology strategy, the Defence Research and Development Canada, the Defence Development Sharing Agreement, the Canadian Foundation for Innovation also favour the establishment in this country of high-tech defence and security companies.

Coordinating agencies and support mechanisms in Canada

• The Institute for Information Technology of the National Research Council (NRC-IIT). Areas of expertise include soft ware engineering, knowledge management, intelligent systems, high performance computing, 2D digitizing and visualization, human-computer interaction and e-learning.
• Communications Research Centre Canada (CRC) is an Agency of Industry Canada and one of Canada's Centres of excellence that specializes in communications and related technologies.
• Strategic Aerospace and Defence Initiative (SADI). Launched in 2007, supports private sector industrial research and pre-competitive development (R&D) through repayable project contributions.
• Scientific Research and Experimental Development (SR&ED). Canada offers one of the most favourable tax treatment for research and development among the G-7 countries. It includes a system of tax credits and accelerated tax deductions for a wide variety of expenditures including salaries, overhead, capital equipment and materials. The program is complemented by competitive corporate income tax rates.
• Provincial government support programs.

About Lockheed Martin

Headquartered in Bethesda, Maryland, Lockheed Martin is a global security company that employs about 150,000 people worldwide, with sales estimated at $42 billion in 2008, primarilly engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Lockheed Martin is the #1 supplier of IT services to the US government. The company employs more software engineers than Microsoft. Systems Integration and IT services represent more than 50 percent of corporate activities.

The company which presently hires over 550 highly specialized people at 10 locations in 6 Canadian provinces has had a long-standing, enduring commitment to Canada through a continuing presence in this country since 1939.

Lockheed Martin is more than an airplane and rocket company, it is a diversified company engaged in aeronautics, space systems, electronics systems, integrated systems and global services, leveraging R&D investments, technology, skills and experiences around the globe.

To learn more about investment opportunities in Canada, consult: www.investincanada.com

Prepared by the Invest in Canada Bureau, Spring 2009