Ottawa puts up almost $20 million for aircraft company in London, Ont.

The federal government says it will provide almost $20 million dollars to a company in London, Ont., for the research and development of a new class of small business jet.
Industry Minister Jim Prentice said Saturday the $19.6-million "repayable investment" will allow Diamond Corporation to work on the single-engine D-Jet
The plane would seat five passengers and be made from composite materials.
The project, which will initially focus on developing four prototypes, is expected to cost $95 million.

It could mean the creation of another 500 jobs for the city's aerospace industry.

Terms of the investment were not immediately available.

"The D-Jet project will build on Canadian strengths and help maintain Canada's place as a world leader in small all-composite aircraft," Prentice said.

The Diamond Group has manufacturing facilities in Canada, Austria, China and Germany.

The company employs more than 1500 people worldwide, 580 of them in Canada.