With the participation of the Quebec government, CAE to invest up to C$274 million in R&D in three new growth areas
June 21 2009 - 10:00AM
Marketwired
(NYSE: CGT)(TSX: CAE) - CAE and the Quebec government announced
today an investment of up to C$274 million in a new research and
development (R&D) program extending over seven years. The
Quebec government will participate through a repayable investment
which could reach C$100 million and CAE's share of the program is
C$174 million. The aim is to leverage CAE's modelling, simulation
and training services expertise into the promising sectors of
healthcare, heavy equipment, mining and energy. Investissement
Quebec will handle the funding and the follow-up for the Quebec
government contribution.
"CAE is a world leader in modelling and simulation for aerospace
and defence. We intend to leverage our expertise into fields that
have similar challenges. Fields where safety is imperative and
there is little margin for error, where task complexity and costs
of training on real equipment are very high," said Robert E. Brown,
CAE's President and Chief Executive Officer. "In addition, this new
development axis will enable us to continue diversifying our
activities.".
"Research and development is at the core of CAE's global success
as a world leader in modelling, simulation and training in the
aerospace sector," declared Mr. Raymond Bachand, Minister of
Finance, Economic Development, Innovation and Export Trade in the
Quebec government. "The Quebec government is therefore proud to
support CAE's efforts to develop its capacities in sectors outside
aerospace and defence, which will boost its growth in the years to
come."
Some of the funds will be used to develop innovative education,
technology and service solutions for healthcare professionals in
order to improve the safety and efficiency of the healthcare
industry. CAE has already signed contracts and alliances in
simulation-based healthcare training, with the Michener Institute
for Applied Health Sciences in Toronto, with Universite de Montreal
and with the Winnipeg Health Authority. CAE estimates the global
market for simulation-based healthcare training will be in excess
of $1.5 billion by 2012.
CAE will also invest in R&D in the mining and heavy
equipment sector. As in aviation, safety is a key factor in mining
operations, where the very high costs of the machinery and
equipment entail that they are used to the maximum. This means only
limited access to the machines to train operators and drivers.
CAE will also invest in simulation and modelling tools aimed at
optimizing the management of production, distribution networks and
commercialisation in the energy sector.
This new R&D program is in addition to Project Falcon
announced on March 31, 2009. Falcon's objective is to develop new
technologies in CAE's two core markets, aerospace and defence.
CAE is a world leader in providing simulation and modelling
technologies and integrated training solutions for the civil
aviation industry and defence forces around the globe. With annual
revenues exceeding C$1.6 billion, CAE employs more than 6,500
people at more than 75 sites and training locations in 20
countries. We have the largest installed base of civil and military
full-flight simulators and training devices. Through our global
network of 29 civil aviation and military training centres, we
train more than 75,000 crewmembers yearly. We also offer modelling
and simulation software to various market segments and, through
CAE's professional services division, we assist customers with a
wide range of simulation-based needs. www.cae.com
High resolution photos of the press conference will be available
on www.cae.com/photos
Contacts: CAE Nathalie Bourque Vice President, Public Affairs
and Global Communications 514-734-5788 nathalie.bourque@cae.com
Pascale Alpha Director, Global Communications 514-833-3477
pascale.alpha@cae.com Investor relations: CAE Andrew Arnovitz Vice
President, Investor Relations and Strategy 514-734-5760
andrew.arnovitz@cae.com
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