Attention Business Editors:
ORENDA OPENS AERO-ENGINE MANUFACTURING FACILITY IN NOVA SCOTIA. AIRCRAFT CONVERSION ALSO PLANNED; 450 DIRECT, INDIRECT JOBS EXPECTED DEBERT, NOVA SCOTIA
DEBERT, N.S., Sept. 14 /CNW/ - Magellan Aerospace subsidiary, Orenda
Recip Inc. of Toronto, Ontario, today officially opened North America's newest
aero-engine manufacturing, assembly and aircraft conversion facility in
Debert, Nova Scotia, near Halifax.
The ceremony, attended by officials of the company and of the Federal and
Provincial governments, ushered in a new era in aero-engines, with the
production start of the world's first high-output, piston engine certificated
in the last 40 years. Developing 600 horsepower, the turbocharged OE-600A is
the first variant in what Orenda says will be a series of powerplants the
company will produce.
Richard Neill, Magellan president, said he is very bullish on the
potential for the engine. ''We have developed and certificated the first new
high-output engine in a generation,'' he said. ''It's a significant step in
the engine business; a major milestone in aerospace,'' he continued.
The facility, housed in a 42,000 square foot hangar, represents an
investment of $28 million by Orenda Recip, including $18 million from the two
governments. The federal government assistance is in the form of $8.4 million
in repayable investments from Technology Partnerships Canada; The Nova Scotia
Department of Economic Development provided $9.3 million in similar fashion.
Situated on the former Canadian Forces Base in Debert, the plant is expected
to encourage further development by other aerospace companies. Approximately
18,000 square feet of the building is dedicated to engine building and parts
manufacture, while the remainder is slated for aircraft conversion and
modification.
''The OE-600 is significantly more powerful than other current-production
piston engines, and it is far less expensive than gas turbines of equivalent
horsepower,'' added Peter Jackson, Orenda Recip general manager. ''With the
retrofit market as our initial target, we have received strong and
enthusiastic response for our new product. Down the road we expect several new
aircraft will be designed around the OE-600 and its variants,'' Jackson said.
Orenda selected Debert 18 months ago as the ideal location for engine
production, due to its highly skilled labor force, its experience in aerospace
component manufacture, and its dynamic attitude toward new investment in
technology-based industries. ''We have had nothing but total support from the
governments of Nova Scotia and Canada since we first began our site search,''
Neill said. ''We feel they are part of our team, and that makes us determined
to create a successful engine plant here.''
''The Orenda Recip facility is a good example of how TPC is working to
reinforce our technological strengths and create high-quality jobs in this
leading edge industry, said Senator Al Graham, Leader of the Government in the
Senate.'' The opening of the Orenda Recip facility will benefit Nova Scotia
and Atlantic Canada by providing increased potential for jobs and growth in
this knowledge-based industry.''
Orenda Recip in Debert is currently hiring aerospace workers for the
plant, and believes employment will top 110 within five years. Indirect
employment has been calculated at a further 345 jobs in the region, attributed
to the program.
''This operation is bringing a big boost to the economy of Colchester
County,'' said Economic Development and Tourism Minister Manning MacDonald.
''The plant will create high paying, high skill jobs. It's strengthening Nova
Scotia's place in the growing aerospace industry and it's adding to our
exports. The Province is very pleased to support Orenda.''
Transport Canada and the US Federal Aviation Administration (FAA) granted
certification to the powerplant earlier this year, and manufacturing approval
in June. First deliveries to Stevens Aviation of Greenville, South Carolina
are scheduled later this fall. The company has ordered 140 engines and
conversion kits, valued at US $20 million, to power King Air C90 business
aircraft through a retrofit program. A further 40 engines have been ordered by
other conversion companies.
Stevens Aviation president, Kurt Herwald, expressed his strong enthusiasm
in the program. ''We have been eagerly waiting for this moment, and we are now
more committed than ever. There is a very solid market for the re-engined King
Air C90, and with the much improved performance from the OE-600 we have seen
in flight test so far, I am sure it will impress a lot of potential customers.
We're very pleased,'' he added.
The second business aircraft retrofitted with OE-600s is the Rockwell
Twin Commander, which first flew August 19. Dick MacCoon, president of Mr. RPM
of Camano Island, Washington, the company responsible for Commander
conversions, spoke highly of the reborn aircraft. ''I have been involved with
the Orenda program for four years, and their support has been exemplary,'' he
said. ''Our airplane's performance is simply outstanding with rates of climb
and cruise speeds far exceeding the original powerplants performance. It's
going to be a winner,'' he added.
First engines are being manufactured at Orenda's Toronto plant, with full
production and assembly to be transferred later to Debert. The plant is
capable of producing up to 60 engines per month, with current tooling and
capacity.
Three different aircraft types have already entered the flight test phase
under Orenda power, and several others have been earmarked as strong
candidates for retrofit conversion and for new-aircraft installation.
Installations already flying include the Beechcraft King Air C90, Rockwell
Twin Commander and Lancair Tigress, all of which have begun concentrated
testing leading to certification. Other programs include the de Havilland
DHC-2 Beaver and DHC-3 Otter; Piper pressurized Navajo; Cessna 421; Air
Tractor agricultural aircraft; and the AviaBellanca SkyRocket 3, a
pressurized, six-place business single.
Orenda is a subsidiary of Magellan Aerospace Corporation, a publicly
traded company on the Toronto Stock Exchange (TSE: MAL). Magellan has 2500
employees in nine subsidiaries in Canada and the US: Orenda Aerospace, Orenda
Recip Inc., Fleet Aerospace, Aeronca, Inc., Middleton Aerospace, A-R
Technologies, Bristol Aerospace, Chicopee Manufacturing and Ambel Precision
Manufacturing Corp. Magellan specializes in aerostructures, industrial and
aero-engines, and turbine engine component manufacture, repair and overhaul.
Annual revenues are in excess of $420 million.
-0- 09/14/98
For further information: Peter Jackson: (905) 673-3250; Jamie McIntyre: (514) 393-1080; Jamie McIntyre, McIntyre Kennedy Inc., Tel: (514) 393-1080; Fax: (514) 874-1900
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