Boeing to invest $7.4 billion in Canada pension plan
Boeing is investing $7 billion in a Canadian pension plan in an effort to keep the plane maker’s workforce here.
The deal will create one of the largest pensions in the world for workers in the aerospace sector.
It also comes as Boeing prepares to invest an additional $4.6 billion in an aircraft manufacturing facility in Ontario that will create the country’s largest assembly plant.
It is the latest move by Boeing in Canada.
Earlier this year, the company announced it was investing $1 billion in its new aerospace and defense manufacturing facility.
Boeing will build four 737 MAX aircraft.
Boeing will also buy Boeing Co. aircraft, and plans to expand its plant in Thunder Bay, Ont., which is also home to the company’s assembly plant, and to build two new Boeing 737 MAX jets.
The aerospace company has been investing billions in Canada for decades and will add more than $1 trillion to its domestic manufacturing and support of the aerospace industry.
It will invest in more than 3,000 manufacturing jobs.
The company will also build its first aircraft assembly plant in Ontario, which will create 2,300 new jobs.
It is expected to produce 20 new aircraft a year.
The news comes as the U.S. Federal Reserve begins to reduce its key interest rate to zero and as the world economy continues to contract.
The Canadian economy is expected taper back to a more normal pace of growth.