Thank you, Mr. Chairman.
My name is Bill Matthews. I am representing Magellan Aerospace at today's committee meeting.
My responsibilities as the vice-president of marketing at Magellan include customer interface, business development and capture, and customer strategic liaison for future opportunity. My participation in JSF started in early 1999 and continues today as one of the ever increasing team in Magellan Aerospace for this outstanding program.
Mr. Chairman, I would like to start with a few words about why we at Magellan consider this to be a great program for Magellan, for the Canadian air force, and for Canada.
The Joint Strike Fighter program, including the F-35 aircraft and the engines that will power it, is a perfect example of the kind of program that companies such as Magellan seek. It fits within Magellan's core capabilities; it is exceptionally high technology in its design, materials, and systems, allowing manufacturing advancement; and it is expected to be in production for 20 to 30 years, allowing efficiencies and return on investment for industry manufacturers.
Additionally, our air force will be equipped with affordable aircraft that meet the defined requirements for the threats faced today and for those foreseen for the future, that can be operated seamlessly with our allies, and that are at the beginning of their life cycle, not at the end.
And finally, this program is ideal for Canada through the widespread engagement of over 80 Canadian companies who are proving capable of contributing technology and providing costing that is competitive on a world level. The current estimate of the value of the participation of Canadian industry is $12 billion. This is exclusive of the value of support opportunities estimated at several billion more: high-technology jobs lasting decades and starting immediately across Canada.
If I may, Mr. Chairman, more specifically for Magellan, our company has supported fighter aircraft programs in Canada and the United States for decades, in the areas of both new build and repair and overhaul activities. The list includes the F-86 Sabre, the CF-100 Canuck, the Avro Arrow, the CF-104 Starfighter, the CF-101 Voodoo, the CF-5 Freedom Fighter, and currently the CF-18 Hornet.
We have also supported the repair and overhaul of engines on these aircraft and others for both DND and the U.S. DOD. This is a business we know well and one that has prepared us for Joint Strike Fighter. Many other Canadian companies have similar experience levels and are similarly prepared.
Magellan has been engaged on the Joint Strike Fighter program for more than a decade. It has produced development parts in 2003 that were the first produced outside the United States. It has delivered critical components to each of the three F-35 variants and is working to position its divisions for engine work as the ISS aftermarket program is rolled out.
Magellan's initial estimate of participation value on Joint Strike Fighter in early program days was $1 billion to $1.5 billion. In 2008 Magellan released an estimate of $3.0 billion based on work won and its extension, on conservative estimates. Today that target remains valid, with upsides seen on engines and aftermarket. To achieve this level of business, we have or will have over the next four years invested up to $120 million in infrastructure, equipment, and technology, and in the education of our people to meet the rate reduction requirements at our operating sites.
Mr. Chairman, Magellan has worked hard on this program, starting early and contributing investment, energy, and know-how. The successive Canadian governments' support of this program has been instrumental in our industry's success throughout the past decade, and the current government's announcement on July 16 past was especially timely. This removed doubt and uncertainty within our ranks, and more importantly in our customers' minds.
Mr. Chairman, Magellan's purpose in accepting this opportunity to speak today is to provide assurance to those members less aware that this is the right program in all its aspects for our country. It is also to leave no doubt that reintroduction of that uncertainty will cost Canadian industry its opportunity and Canadians their jobs.