Firms in Atlantic Canada will get contracts worth $290 million to help build and maintain Canada's new fleet of military transport planes, two aerospace giants said on Tuesday.

Lockheed Martin and Boeing made the announcement Tuesday at the IMP Aerospace hangar at Halifax International Airport.

When it signed deals with the companies for new aircraft, the federal government required that they match each dollar provided by Ottawa with investments in high technology contracts for Canadian companies.

Lockheed Martin said it would spend $242 million in local contracts for work on the 17 new C-130J Super Hercules planes.

Boeing committed to spending $52 million for work on four C-17 Globemaster III transport planes.

"These significant investments are a sign of confidence in the talent and abilities of our region's businesses, which have demonstrated that they have what it takes to become part of Boeing's and Lockheed Martin's global supply chains," said Defence Minister Peter MacKay, who represents a Nova Scotia riding, in a release.

Companies expected to win contracts include Halifax's IMP Group International Inc., St. John's Northstar Network and Wiebel Aerospace in Summerside, P.E.I.

Newfoundland's Memorial University is also expected to receive research work.

"These investments are today's snapshot of the economic activity that has begun to flow from the strategic and tactical airlift procurement," said Industry Minister Jim Prentice. "They represent just the beginning of the significant industrial benefits to be realized in the coming years."

Hoping U.S. won't block high-tech jobs

IMP head Ken Rowe said he welcomes the announcement, but is concerned the U.S. government will cite security concerns to prevent technical data from being included in the contract, which would limit the new jobs to mechanical rather than high technology positions.

He told CBC News his company has already faced this type of obstacle, with search and rescue helicopters.

"The government, for whatever reasons, didn't buy the intellectual property, only decided to do it incrementally, so we have a terribly difficult job, our engineers, to keep those aircraft going, and we're only now achieving it after seven or eight years," he said.

"It degrades Canadian industry into becoming what we call 'wrench turners' rather than the high tech knowledge you see going on in these hangars."

Rowe said the data rights for the new contracts are still under negotiation.

With files from the Canadian Press