Harper Government Invests in
the Canadian Forces and Jobs
London-based company will upgrade Canadian Forces’
fleet of Light Armoured Vehicles

London, Ontario, October 21, 2011 — The Honourable Julian Fantino, Associate Minister of National Defence, and Ed Holder, Member of Parliament for London West, today announced that General Dynamics Land Systems – Canada has been awarded the contract for the implementation phase of the Light Armoured Vehicle (LAV) III Upgrade Project by the Government of Canada. The announcement was made on behalf of the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women.

“Today’s announcement is welcome news for our Canadian Forces and the City of London. Our Government is delivering results on its twin objectives of giving the Canadian Forces the tools needed to protect Canada’s sovereignty, while creating jobs right here in Ontario,” said Minister Fantino. “We are maintaining skilled Canadian jobs right here in London, and ensuring that the Canadian Army is prepared with the critical equipment they need to protect our interests now and well into the future.”

“This is great news for London because it sustains over 2200 local jobs and continues Canadian expertise in our local high-value technology industry right here in our city,” said MP Holder. “This is a definite boost to London’s economy by providing good quality jobs and employment security for many families. It is helping to re-build London’s high-tech manufacturing sector.”

Canada’s LAV III vehicles have served the Canadian Forces in Afghanistan and other areas of operation. They are state-of-the-art combat vehicles used to transport infantry on the battlefield while providing defensive protection and firepower.

The LAV III Upgrade Project Implementation Phase contract is necessary to improve the protection of these vehicles against mines and improvised explosive devices, improve their mobility, improve the safety of Canadian Forces members travelling on board the LAV III, and incorporate ergonomic and information management improvements. The contract, valued at $1.064 billion, will upgrade 550 LAV IIIs, extending their lifespan to 2035.

The Industrial and Regional Benefits (IRB) Policy will apply to this contract. The IRB Policy ensures that economic benefits flow to Canada as a result of defence procurements, which means that General Dynamics Land Systems – Canada will be required to re-invest into Canada 100 per cent of the contract value, further expanding the economic benefits from this procurement in regions across the country. This contract is part of over 60 major procurements subject to the IRB Policy, which represents over $20 billion in IRB commitments from major defence contractors.

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