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Linamar Expands With Canadian-Ontario Incentive Grants

01/16/2018
Linamar Corp., an auto parts manufacturer, plans a $603 million expansion project at its production facility, 62 miles west of Toronto, in Guelph, Ontario, Canada.

According to Canadian economic development officials, the project is supported by incentive grants from both the federal and provincial governments. The Canadian Government will fund approximately $39.4 million U.S. with up to 40 million U.S. coming from the Province of Ontario. The expansion is expected to create 1,500 jobs and “maintain” another 8,000, a statement from the Canadian Government said.

“We are thrilled by the support shown today by both our federal and provincial governments for our significant investment in innovation. Innovation is the single most important thing we can do in terms of both product design, process design and material development to solve global problems and create opportunities for us all to succeed. To have our government support us in that endeavour is fantastic, further cementing the fact that Canada is a great place for advanced manufacturing to thrive,” Linda Hasenfratz, CEO, Linamar Corporation.

Ontario and Canada are partnering with Linamar to advance cutting-edge auto technology and boost R&D, officials said. Ontario is providing Linamar with a conditional grant through the Jobs and Prosperity Fund of up to $50 million as part of a project with overall eligible costs of up to $500 million. The project duration is until 2024 with job commitments lasting until 2029. The Government of Canada is also providing matching funding towards the project.

The investment will help Linamar manufacture next-generation transmission and drivetrain components and systems. It will also assist the firm to build high-efficiency engine components. Develop and produce electrified and connected vehicle technologies and create a dedicated Innovation Centre focused on artificial intelligence, machine learning, collaborative robotics and lightweight components.

Provincial officials said “this investment solidifies Ontario's leadership in the development and manufacturing of the next generation of vehicles. It will also increase technological capabilities in the supply chain, making the province's automotive sector more competitive. Ontario is the top vehicle producer in North America, and is uniquely positioned to lead the development of exciting new automotive technologies worldwide, attracting new investments and jobs to the province.”

“Ontario’s auto industry continues to attract investment, even in the midst of uncertainty about NAFTA, which proves our foundational strength when it comes to building and developing new vehicles. Partnerships like this one support our long-term competitiveness and help Ontario continue to lead the way in transformative vehicle technologies,” said Brad Duguid, Minister of Economic Development and Growth.

Investing in advanced manufacturing and innovation is part of Ontario's plan to create fairness and opportunity during this period of rapid economic change. The plan includes a higher minimum wage and better working conditions, free tuition for hundreds of thousands of students, easier access to affordable child care, and free prescription drugs for everyone under 25 through the biggest expansion of medicare in a generation, officials said.

Ontario is the only region in the world with five global automotive assemblers, Fiat-Chrysler, Ford, General Motors, Honda and Toyota, as well as truck manufacturer Hino.

“Our government is investing in automotive innovation, one of Canada’s leading sectors. This investment will create and maintain middle-class jobs in Southern Ontario and drive economic growth in the area. Investing in these projects also means that Canadian manufacturers can remain globally competitive and a leader in technological advancements,” said Navdeep Bains Federal Minister of Innovation, Science and Economic Development.

“Linamar is an integral part of Ontario’s manufacturing sector and is a great example of a success story in southwestern Ontario. Our government continues to work with businesses like Linamar that help boost the economy and create good, stable jobs. I’m delighted the government can be part of the long-term vision for a business that continues to innovate and grow in Guelph,” said Liz Sandals, MPP for Guelph.

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