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French company bids for $2.2B Canadian defence contract

In this photo taken Tuesday, Jan. 26, 2010, Maj. Mark Popov, right, from Petawawa, Ontario of The Royal Canadian Dragoons watches a Light Armored Vehicle (LAV) driven by Canadian soldiers from Task Force 3-09 Battle Group drive through farm land at the start of operation Tazi, a village search and security operation in the Dand area of Kandahar Province, southern Afghanistan. (AP Photo/Kirsty Wigglesworth)
In this photo taken Tuesday, Jan. 26, 2010, Maj. Mark Popov, right, from Petawawa, Ontario of The Royal Canadian Dragoons watches a Light Armored Vehicle (LAV) driven by Canadian soldiers from Task Force 3-09 Battle Group drive through farm land at the start of operation Tazi, a village search and security operation in the Dand area of Kandahar Province, southern Afghanistan. (AP Photo/Kirsty Wigglesworth)

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Date: Tuesday Jan. 31, 2012 6:41 PM ET

OTTAWA — A French defence contractor that hopes to sell close combat vehicles to the army says it has lined up Canadian companies to do much of the work.

Nexter Group Systems submitted two bids last month for the program, which is ballparked at $2.2 billion and was originally announced a couple of years ago by the Harper government.

Phillipe Burtin, the company's chairman and chief executive officer, says it would create as many as 1,600 jobs among Canadian companies if its bid is selected.

The armoured vehicle-maker is proposing to construct and assemble its 30-tonne VCBIs at Bombardier in Montreal and has enlisted Raytheon Canada Ltd. to handle in-service support and maintenance.

Burtin told a gathering of potential suppliers today that between 80 and 90 smaller Canadian companies could be called upon to deliver sub-contracted parts.

The VCBI has already been used by the French army in Afghanistan and is essentially a heavier version of Canada's existing light armoured vehicle -- known as a LAV III.

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