Canadian Manufacturing

MDA says unrest in Ukraine will delay satellite program

B.C.-based firm has declared force majeure for ground portion of communication satellite program

RICHMOND, B.C.—Tension between Russia and Ukraine over the contentious repatriation of Crimea has led MacDonald, Dettwiler and Associates Ltd. (MDA) to delay a satellite communications contract in the former Soviet nation.

According to the Canadian firm, it has declared force majeure for the ground portion of a communication satellite program in Ukraine.

The force majeure, a clause built into the deal to exempt the sides from obligations due to causes beyong their control, was accepted by the undisclosed customer.

MDA said the two sides are evaluating “several” scenarios to proceed with the deal, and hope to minimize the impact of the tensions in Crimea.

Those evaluations will explore the impact on the cost and the schedule of the program.

Preliminary estimate show the project is expected to be delayed approximately four to six months.

The company’s communications satellite program in Russia will not be impacted, according to MDA.

Last month Bombardier Inc. said the situation in Ukraine could lead to a delay in a deal to build its Q400 turboprops in Russia.

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