Of course.
Evidence of meeting #39 for National Defence in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A recording is available from Parliament.
Evidence of meeting #39 for National Defence in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was program.
A recording is available from Parliament.
4:30 p.m.
Conservative
Peter Braid Conservative Kitchener—Waterloo, ON
In your presentation you mentioned that the JSF program will give your company and other Canadian companies the opportunity to leverage technology. Could you elaborate on that and provide an example?
4:30 p.m.
President and Chief Executive Officer, Héroux-Devtek Inc.
We designed the uplock systems, for example. They are very sophisticated. We can eventually apply this design to other airplanes that will need this type of technology.
4:35 p.m.
Conservative
4:35 p.m.
Conservative
Ray Boughen Conservative Palliser, SK
Thank you, Chair
To the panel, thanks for coming to share time with us this afternoon.
You were quoted in the Montreal Gazette in an article titled “Hmm. Ignatieff's stance on F-35 program downright puzzling”, on September 20, 2010, as saying:
We believe we can get more benefits for Canada than a regular (offset) program because we're competitive.
Can you elaborate on that statement a little for the committee?
4:35 p.m.
President and Chief Executive Officer, Héroux-Devtek Inc.
We have the chance here to join a program that will include more than 3,000 airplanes. So we can build products for 3,000 airplanes. As a regular IRB, if we buy 65 airplanes our offset obligation will normally be that we will get work for 65 airplanes.
We are a competitive company, and I think we've proved that. We're number three in the world in our business. When I started we were nobody. We were doing $12 million a year, and this year it will be over $350 million. I think we are competitive. We can compete. We've proved that in the past. I'm not afraid of getting our fair share on this F-35 business.
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
There's a change in practice happening in Canada. For many years, many in industry were dealing with partners in the United States, but we have also learned to protect our technology with patents. I'm sure my friend Gilles and I have many patents that will protect us worldwide for the next 21 years. They are on many new products used in the joint strike fighter. It is also very important to know that Canada is starting to remain competitive--to protect its IP to produce new products.
4:35 p.m.
Conservative
Ray Boughen Conservative Palliser, SK
In that same article they quoted Mr. Ignatieff that “The window of opportunity is right now. It's not in two or three years from now.”
Can you help us understand that?
4:35 p.m.
President and Chief Executive Officer, Héroux-Devtek Inc.
As I said, the program is still at a very low rate of production. We're building around 30 aircraft a year. At some point this program will ramp up to more than 200 airplanes a year. So there's still time now to join the supply chain to become a second source, or even replace certain suppliers that are not performing. I think there's still time to get some additional work.
I can show you an article that the Dutch, the Italians, and the Turks are really trying everything they can to get their share. We have to do the same now.
4:35 p.m.
Conservative
Ray Boughen Conservative Palliser, SK
Thank you. I agree with you. I am certainly not at odds with what you're saying.
Can you share with us what the consequences would be to your company and the Canadian aerospace industry if we delayed the purchase of the F-35s?
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
The world economy today is not very good on the commercial side. We are happy to see that there are some strong and good defence contracts, in particular for the joint strike fighter. Any delay will put each company in more difficulty than we are in today.
4:35 p.m.
Conservative
The Chair Conservative Maxime Bernier
Thank you very much.
Now I will give the floor to Monsieur Bachand.
4:35 p.m.
Bloc
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
Good afternoon, Mr. Bachand.
4:35 p.m.
Bloc
Claude Bachand Bloc Saint-Jean, QC
This isn't a trick question. You're a friend. My family came from France, so you are one of my friends.
When I think about Composites Atlantic Ltd., I think about EADS. Am I correct in doing so?
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
No.
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
Our company is an EADS affiliate, but through Sogerma, another division of EADS. So there is no direct connection with the company.
4:35 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
The big company is at the top, but then there is another group, and we are under them.
4:40 p.m.
Bloc
4:40 p.m.
President and Chief Executive Officer, Canadian Sales Office, Composites Atlantic Limited
No, Composites Atlantic Ltd. is certainly not going to give orders or make recommendations to EADS. At the same time, EADS is not going to make recommendations to Composites Atlantic Ltd. about choosing contracts. As a company, we are entirely free to present our budgets and choose our contracts. It's normal. It's public information.
December 9th, 2010 / 4:40 p.m.
President and Chief Executive Officer, Héroux-Devtek Inc.
Think about the work you're doing for Boeing.