Bombardier will receive £180 million ($296 million) from the UK government in support of the business jet manufacturer's CSeries programme, which could create around 1,700 jobs at the company's Belfast plant in Northern Ireland.
The investment is also likely to create up to 1,500 jobs at Bombardier's suppliers.
"This contribution from the UK government will help to create or sustain many hundreds of jobs, not just in Northern Ireland, but throughout our 800-company supply chain in the UK and Ireland," says Michael Ryan, vice-president and general manager for Bombardier Aerospace Belfast.
Work including the development and manufacture of the wing, engine casing and part of the tail of Bombardier's proposed 110- to 130-seat CSeries family of airliners would be located in Belfast under the terms of the deal.
UK Secretary of State for Northern Ireland, Peter Hain, says: "This announcement represents a historic moment for the continued development of the aerospace industry within Northern Ireland.
"It is a real testament to the skills and abilities of the local workforce and will ensure that this region retains its position as a market leader in this important business sector."
Hain adds: "The new jobs will make a significant contribution towards the social and economic well-being of Northern Ireland."
Source: Flight International