MISSISSAUGA, Ontario - GE Aircraft Engines Canada formally signed a $60 million (Canadian) contract with EH Industries Ltd. (EHI) to supply T700/T6A1 turboshaft engines, assembled and tested in Canada, to power Canada's new EHI Cormorant search-and-rescue helicopters.

The signing took place in Italy as part of the Canadian government's recent trade mission headed by Prime Minister Jean Chretien.

"The Italian trade mission provided an excellent setting for our signing of the contract, accelerating the execution of the contract to allow us to get on with the work. As well, the trade mission helped to strengthen the commercial links between Canada and Italy," said Robert T.E. Gillespie, chairman and chief executive officer, GE Canada.

"This contract reflects our ongoing commitment to support Canada's Department of National Defence initiatives," said Carl Swabek, regional director, GE Aircraft Engines in Canada.

The engine contract is expected to provide economic benefits exceeding the contract amount to firms throughout Canada.

The T700 turboshaft engine, and its commercial variant, the CT7 turboprop engine, power 24 types of civil and military helicopters, regional airliners, military transports, and multipurpose aircraft worldwide. More than 10,000 engines accumulating more than 27 million hours in service, often in extreme environments, have established the T700 as the most reliable helicopter engine in the world.

General Electric, founded by Thomas Edison over 100 years ago, is one of the world's most diverse manufacturing, services, and technology companies, comprising 12 global businesses that include GE Aircraft Engines, the world's largest producer of turboshaft, turboprop, and turbofan engines for commercial and military aircraft and aeroderivative engines for marine applications.