Quebec companies will benefit from $660 million in aerospace contracts, the federal government announced Monday.

The money is coming from U.S. giants Boeing and Lockheed Martin, who were awarded two major contracts to build planes for the Canadian Forces. In exchange for the contracts, both companies have agreed to ultimately invest 100 per cent of the contract value back into the Canadian economy.

The military signed its deal with Boeing in February 2007 — giving the company $1.5 billion to build and maintain four heavy-lift cargo planes. Lockheed Martin was awarded a $1.4-billion contract last week to provide the military with 17 Hercules transport planes.

Of the $660 million in contracts announced Monday, $420 million will come from Boeing and $240 million from Lockheed.

One of the major Quebec beneficiaries is RTI Claro, a company based in Laval, north of Montreal. Boeing has given RTI a $346-million contract to supply titanium and aluminum components for the company's 787 Dreamliner planes.

"What we're doing as a Canadian government is fulfilling two obligations," Industry Minister Jim Prentice said in Laval on Monday.

"One is to rebuild the Canadian Forces, and as we do so, to insist that 100 per cent of the value of equipment and machinery and planes that we purchase see their way through to investment in Canada."

The government said Boeing and Lockheed Martin will be announcing more contracts soon, and they will be assigned to companies in other regions across the country.