Vector Aerospace of Summerside, P.E.I., has been awarded a three-year contract with the Canadian Armed Forces.
The company will receive just over $1 million to repair and maintain engines on CC-138 Twin Otter aircraft.
The aircrafts are used primarily in Northern Canada for transport as well as search and rescue missions.
The contract is good news for the area, said Jeff Poirier, Vector's president of engine services.
"We've actually had a very good year. We've hired about 50 new employees this year, and we're looking to add another dozen more," said Poirier.
"A contract award such as this, particularly from a government-funded source like a military contract, is sustainable for long, long years. And it just allows us to continue to divest our corporation."
The government said there's potential for the contract to be extended for up to 10 years, which could increase the value of the contract to $7.9 million.