Pratt & Whitney Canada announced Monday that it will invest $1 billion in research and development over the next five years for the next generation of high-performance aircraft engines.
The investment includes a $300 million loan from the Canadian government under its strategic aerospace and defense initiative program. The company said the investment will enable it to sustain its engineering centers in Ontario and Quebec and hire about 200 engineers for its development programs in addition to the 1,500 it employs.
Pratt & Whitney Canada is developing advanced propulsion technologies for improved environmental performance, including reduced fuel consumption, emissions and noise. The new engines will be used in corporate aircraft, regional carriers and helicopters.
The research and development work will be done in Mississauga, Ontario, and Longueuil, Quebec, south of Montreal, where Pratt & Whitney Canada is based.
In a separate announcement, Canadian Industry Minister Tony Clement said the government believes the project could create more than 2,000 jobs over the next 15 years.
Pratt & Whitney Canada has more than 6,200 employees at plants in Alberta, Manitoba, Nova Scotia, Ontario and Quebec.
Parent Pratt & Whitney, the jet engine manufacturing subsidiary of United Technologies Corp., is the third-largest jet engine maker after General Electric Co. and Rolls-Royce Corp. of Britain.
Shares of United Technologies declined 3 cents, or 0.04 percent, to $78.37 in afternoon trading Monday.