Unveiling what the Minister of International Trade said was the largest advanced manufacturing export win in Canadian history, officials Friday revealed a potential $13 billion deal for General Dynamics Land Systems-Canada [GD] with Saudi Arabia for vehicles and associated equipment and support.
The contract is for new Light Armored Vehicles (LAVs) and will start with a design and development phase. The first of the vehicles will roll out sometime in 2016, General Dynamics said.
The contract was facilitated by the Canadian Commercial Corp., (CCC), Canada’s international government-to-government contracting organization. Saudi Arabia is a priority market under the government’s new Global Markets Action Plan.
In 2013, Canadian merchandise exports to Saudi Arabia totaled $900 million.
Canadian Minister of International Trade Ed Fast joined by Danny Deep, vice president of General Dynamics Land Systems-Canada, made the announcement in London, Ontario where the LAVs will be designed and manufactured. London will become the center of a cross-Canada supply chain directly benefiting more than 500 local Canadian firms, a Feb. 14 government statement said. Fast led trade missions to Saudi Arabia in 2012 and 2013.
This 14-year contract will create and sustain more than 3,000 jobs each year in Canada, with southern Ontario accounting for approximately 40 percent of the supply base.
“Our government will continue to support our exporters and manufacturers to create jobs, as part of our government’s most ambitious pro-trade, pro-export plan in Canadian history,” Fast said.
Deep said, “This latest contract confirms our position as a leading armored vehicle designer and manufacturer in the world and a Key Industrial Capability in Canada. This is a testament to the skills and quality of work that exist in Canada today. In addition, we are grateful for all of the assistance provided by the Government of Canada. The whole-of-government approach to export sales gives us a strategic advantage as we pursue international markets.”
General Dynamics Chairman and CEO Phebe Novakovic telegraphed a major order was in the works during the release of its fourth quarter results in January (Defense Daily, Jan. 22). The order had been delayed throughout 2013.