$2.1B aerospace contract confirmed in Quebec to develop new satellite technology

Technicians put the final touches on two of three Radarsat Constellation Mission satellites at the MDA facility Thursday, June 21, 2018 in Montreal. THE CANADIAN PRESS/Ryan Remiorz

A major contract for the Montreal plant of satellite antenna manufacturer MDA can finally go ahead now that its customer, Telesat, has confirmed its business plan.

Valued at $2.1 billion, this contract, the largest in MDA's history, enables it to launch a new digital satellite technology, explained the company's president and CEO, Mike Greenley.

"This contract is so big that it allows us to bring this product to market with a high production volume. It's a great starting point that will put us on a good footing to sell this product to other customers," said Greenley in an interview on Friday.

The agreement calls for 198 satellites to be built at Sainte-Anne-de-Bellevue on the Island of Montreal. The contract includes options to purchase up to 100 additional satellites. These low-orbit satellites will be used to connect remote regions to the Internet.

"The contract will be carried out entirely in Montreal," said Greenley. It will involve several hundred employees and an expansion of our facilities."

MDA has enough staff to start production "right away," he said. "In the next two to three quarters, we'll be hiring a significant number of people as a result of this contract. Taking into account the Telesat project and future digital satellite contracts, we'll be adding a few hundred new employees."

Telesat's first satellites are scheduled to be sent into orbit in 2026, with a goal to offer commercial service in 2027. In 2021, Telesat had anticipated a launch this year.