By Ross Marowits, The Canadian Press

MONTREAL - A unit of the European aerospace giant that owns Airbus plans to create more than 150 jobs in Quebec in a project that will see it build the centre fuselage for new business jets being made by Bombardier Inc. (TSX:BBD-B.TO - News).

Aerolia, a subsidiary of EADS, says the jobs will be created at two sites as it supplies a key component of the Bombardier Global 7000 and 8000 jets.

The provincial government is providing $15 million, including a $5-million grant, towards the $82.4-million project in the Montreal area.

Aerolia will begin its development efforts by mid-2013. Production of the first sub-assemblies will take place in Aerolia's sites in France and Tunisia.

The work will later be transferred to Quebec.

Bombardier is the world's largest manufacturer of business jets and the third-largest maker of passenger gets overall, after Airbus and Boeing.

The EADS Group, which includes Aerolia and Airbus and numerous other companies in the defence and aerospace industry, employs 133,000 people worldwide. Aerolia has 2,900 employees around the world and $1.18 billion of sales.

Aerolia Canada was established a year ago and its design office in Montreal employs 100 engineers to design the centre fuselage.

"The announcement of the construction of an assembly plant in Quebec formalizes a major, ambitious and exciting step forward, thereby giving concrete form to the industrial chapter of our contract with Bombardier," stated Christian Cornille, CEO of Aerolia.

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European aerospace firm expands in Quebec to build jet fuselage for Bombardier