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Nemak Of Canada Plans $15.7 Million Retooling Of Its Windsor, Ontario, Manufacturing Hub

01/29/2015
Nemak of Canada Corp., a company that produces and supplies high-tech aluminum components for the automotive industry, will spend $15.7 million to retool its plant in Windsor, Ontario. Newmak will upgrade its production line for the assembly of two-liter, four-cylinder aluminum engine blocks for export to Shanghai General Motors in China.

Expansion of its Canadian production hub will create about 80 jobs, according to company officials. Nemak currently builds engine blocks for export to GM facilities in North America, including high-tech components such as cylinder heads, engine blocks, transmission parts and structural components.

As an incentive, Ontario Provincial Government is contributing a $1.5-million grant to the initiative, as part of project that is also expected to preserve about 200 jobs in the region. Ontario’s incentive grant comes from its Southwestern Ontario Development Fund.

“We appreciate the support of the Southwestern Ontario Development Fund, the local community and our employees. Your support enables Nemak to deliver exceptional value and technology to our customers as we provide Windsor-made complex aluminum castings to the world,” said Patrick Flynn Business Unit Director Nemak USA/CAN.

“Here at Nemak, we continue to innovate casting technology and lead the industry. With support from the Southwestern Ontario Development Fund, and in line with our company strategy of Sustainable Growth through Excellence, we are forging a partnership within China’s growing automotive industry. This new relationship will help grow our global presence while at the same time creating local jobs,” Dr. Glenn Byczynski, Technical Manager, Nemak of Canada Corporation.

The new line is set to begin production next year, with the investment expected to add 2,000 units per day. “That will restart existing lines that had been idled,” Byczynsk said. “We’re already beginning to produce prototypes for Shanghai General Motors and we’re now on the cusp of producing these parts.”

“This is a key strategy for anyone wanting to be competitive in the global market,” Byczynski added. “The Chinese market is growing very quickly and we’re happy to be part of it. And this could be just the beginning for us.”

“Ontario is committed to creating strategic partnerships to attract jobs, increase investment, and contribute to Ontario's economic growth. The Southwestern Ontario Development Fund is working to allow companies, like Nemak, to grow its business, expand globally, and bring more good-quality jobs to communities like Windsor.” said Brad Duguid, Ontario Minister of Economic Development, Employment and Infrastructure.

Advanced manufacturing is a key sector for Ontario’s economy, and partnering on expansions like this one are important opportunities for the province. Nemak is a major employer in Windsor and a leader in the province’s auto manufacturing sector. Ontario’s support will help the company enhance production, create jobs and increase its global competitiveness,” Charles Sousa, Ontario Minister of Finance.

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