#Quebec
NEWS | Laflamme Aéro LX300

Canada Invests $32M in Quebec’s Aerospace Industries

The Canadian Goverment through the Economic Development for Quebec Regions (CED) financial assistant is funding 14 projects to boost recovery of Quebec’s aerospace sector including $3.3M for Laflamme Aero for the upgrade of two LX300 unmanned helicopters





Canada Invests $32M in Quebec’s Aerospace Industries
Canada Government, July 18, 2023 - Salaberry-de-Valleyfield, Quebec, Canada Economic Development for Quebec Regions (CED) - Supporting the aerospace industry, a key component of our economy, is a priority of the Government of Canada.

That is why the Honourable Pascale St Onge, Minister of Sport and Minister responsible for CED, accompanied by Peter Schiefke, Member of Parliament for Vaudreuil-Soulanges, announced on July 7 a total of $32,571,736 in contributions for 14 businesses and organizations in the Greater Montréal, Cantons de l’Est and Québec‒Chaudière‑Appalaches regions.

This CED assistance, provided under the Aerospace Regional Recovery Initiative (ARRI), will enable the Meloche Group, Laflamme Aero, Balko Technologies, Calogy Solutions, Sonaca Montréal, WatchOut Corp., Abipa Canada, Optima Aero, M1 Composites Technology, Tecnickrome Aéronautique, the DCM Group, Alphacasting, Dynatherm Instrumentation and Montréal International to continue to grow and enhance their competitiveness.

Aerospace is a pillar of the economy and innovation in Canada. In 2022, this industry contributed nearly $27 billion to the country’s GDP (an increase of $1.8 billion from 2021) and helped create 212,000 highly qualified jobs (an increase of 14,400 jobs from 2021), in addition to generating nearly $18.7 billion in exports. The aerospace sector is indispensable to the economic development of communities and businesses, from coast to coast to coast. The Government of Canada has committed to supporting Canadian businesses working in this industry by helping them adopt sustainable environmental practices and seize opportunities to boost the country’s future growth.

Peter Schiefke, Member of Parliament for Vaudreuil-Soulanges said “We are working with organizations and their staff to create wealth here in Canada. By helping businesses equip themselves, we are enabling them to grow and remain competitive while contributing to a stronger aerospace sector. With these investments, our government is following through on its commitments to build a stronger, more resilient, more inclusive economy.”

The Honourable Pascale St-Onge, Member of Parliament for Brome–Missisquoi, Minister of Sport and Minister responsible for CED said “The aerospace industry is a key driver of the economy and innovation in Canada. That is why the Government of Canada is proud to announce this major support today for 14 organizations in Quebec. This assistance is key to helping the industry stay competitive on the international stage. Without a doubt, the success and spin‑offs of these projects will be felt across Quebec and Canada.”

Hugue Meloche, President and CEO, Meloche Group said “The Meloche Group is extremely grateful for the financial assistance CED has provided under the Aerospace Regional Recovery Initiative (ARRI). This support has enabled the business to acquire the equipment it needs to develop a new range of components and thereby work with our clients on the engine of the future. When we were fully in the pandemic, CED’s help made it possible for us to concentrate on innovative projects and to continue to grow in the aeronautics industry.”

The funds have been granted under the Aerospace Regional Recovery Initiative (ARRI). Delivered by Canada’s regional development agencies (RDAs) with a national budget of $250 million over three years, the ARRI complements other measures announced in Canada’s COVID‑19 Economic Response Plan. It is part of a global Government of Canada strategy that includes measures being implemented by Innovation, Science and Economic Development Canada to boost the aerospace industry.

CED is a key federal partner in Quebec’s regional economic development. With its 12 regional business offices, CED accompanies businesses, supporting organizations and all regions across Quebec into tomorrow’s economy.

List of aerospace projects fund by Quebec Government


14 projects supported by CED, $32,571,736 in repayable financial contributions from CED a $73,616,349 in total investments generated.

Laflamme Aero Inc. - CED’s contribution focuses on the overall project, which aims to improve the business’s productivity and strengthen its capacity for commercialization, while also boosting its integration into regional and global supply chains. The main activities that will be undertaken are the upgrade of two unmanned helicopter systems (LX300), including the command stations that will be used for commercial demonstrations; the acquisition, installation, and integration of new digital manufacturing equipment, including a five-axis computer numerical control (CNC) machine tool, a digital cutting table, and a coordinate measuring machine (CNC CMM); and leasehold improvements.

9446-7917 Québec inc. - Balko Technologies Inc. - CED’s contribution focuses on the overall activities of the project, which aims to strengthen the business’s capacity for commercialization, including the acquisition of equipment to design demonstrators, the purchase of software, and commercialization and marketing activities.

Calogy Solutions - CED’s contribution focuses on the overall project aimed at developing, commercializing, and certifying an energy storage system for the aerospace industry to make operations in the sector more ecological and enable sustainable environmental practices to be adopted.

Sonaca Montréal Inc. - CED’s contribution focuses on the overall project aimed at maintaining the business’s ability to fill client orders, while also increasing its efficiency and reducing its environmental footprint. Activities include automating preforming activities (involving the hiring of two new robotics engineers), modernizing the painting workshop and machining centres, as well as greening the surface treatment line.

WatchOut Corp. - CED’s contribution focuses on the acquisition and installation of automated multipin equipment and peripheral accessories and equipment as part of establishing this new plant in Greater Montréal, which aims to design and manufacture high-precision metal components for the aerospace industry.

Abipa Canada Inc. - CED’s contribution focuses on the acquisition of production equipment, including state-of-the-art digital machining centres and robots that will be integrated into the client’s Industry 4.0 plant, as part of its project aimed at meeting growing demand as the aeronautics industry recovers internationally.

Optima Aero Inc. - CED’s contribution focuses on the overall activities of the project, which aims to ensure the business grows by acquiring production equipment and technological tools, implementing a marketing strategy internationally, and upgrading helicopters at the end of their lifecycle.

M1 Composites Technology Inc. - CED’s contribution focuses on the overall project aimed at improving the business’s productivity and strengthening its integration into the regional and global supply chain, while also fostering the transition to a greener economy. Activities undertaken as part of this project include the acquisition of used aircraft units and related components to be rebuilt and put back into service to meet global market needs.

Meloche Group Inc. - CED’s contribution focuses on the acquisition and installation of digital production equipment as part of the business’s project to adopt sustainable practices and enhance its productivity.

Tecnickrome Aéronautique Inc. - CED’s contribution focuses on the acquisition and installation of new production automation and digitization equipment for surface treatment services and the mass production of new civilian and military airplane components. The financial support is also contributing to the fitting out of new production facilities. These activities are part of a project to launch a new production line, make operations greener, and strengthen the client’s integration into the regional and global supply chain.

DCM Group Inc. - CED’s contribution focuses on the establishment of an information exchange network for the supply chain and a production cost analysis module as part of a project to improve business productivity.

Alphacasting Inc. - CED’s contribution focuses on the acquisition and installation of cutting-edge digital production and component inspection equipment aimed at improving business productivity.

Dynatherm Instrumentation Inc. - CED’s contribution focuses on the acquisition of specialized digital equipment, including a digital control machining centre and specialized calibration equipment, as part of a project by the business to improve its productivity.

Montréal International - CED’s contribution focuses on the hiring of a project director dedicated full time to attracting and expanding foreign direct investment (FDI) from multinationals and equipment manufacturers offering technological products and services for the most promising and innovative new business segments in this sector, thereby fostering their integration into regional and global supply chains.



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