Dozens of new jobs expected from $17M provincial funding for aerospace manufacturer

The Manitoba government is giving $17 million in grants and loans to an aerospace manufacturing company, amid uncertainty over whether its products could be subject to possible U.S. tariffs. 

Magellan Aerospace, which has factories in Winnipeg and Stonewall, will receive an $8-million grant and a $9-million loan to be repaid over 12 years, the province said Thursday.

The funding will help Magellan create a new machining centre, test new space products and support collaboration with Red River College Polytechnic.

"To know that folks can come out of a high school here in Winnipeg, or a college program at Red River or U of M, and stay here in the province and be part of a world-class manufacturing organization — that's a huge success story," Premier Wab Kinew said during a news conference to announce the funding at Magellan's Berry Street facility.

When asked whether the products Magellan produces could be hit with the tariffs U.S. president-elect Donald Trump has threatened to impose on Canadian imports, Kinew said Canada is a trusted ally and trading partner.

"I think those are things that we need to be pointing to as Manitobans, to say, 'Hey, we're growing our economy here locally, and it's in the best interest of an American audience to keep doing business with us as well.'"

When asked how much of his company's product is exported to the United States, Magellan Winnipeg manager Ron Drepaul said the amount is "significant."

"We definitely support Canadian [Department of National Defence] requirements, but a large portion does go to the United States," he said.

Jamie Moses, the provincial minister responsible for business, trade and job creation, said the province's aerospace sector is one of the largest in the country. 

"That brings in $441 million into our GDP [gross domestic product] every year, represents $369 million worth of our exports out of Manitoba and over 4,300 jobs," Moses said. 

The money announced Thursday is expected to create 64 new jobs, and help 150 students every year with internships and co-op programs, according to the province.