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Linamar Corp. Plans $506.8 Million Expansion At Its Ontario, Canada, Production Center

Canada-based auto parts manufacturer, Linamar Corp. plans a $506.8 million expansion at its operations and production Ccnter in Guelph, Ontario. The company expects to add 1,200 associates to its 6,870 member workforce.

As an incentive the provincial government will provide a $50.25-million grant, with the government of Canada contributing $50.7 million in the form of a repayable loan. Provincial business grants are contingent on the company meeting investment and job targets.

"There's no shortage of regions that are willing to offer all kinds of incentives to companies," Linamar CEO Linda Hasenfratz said. "And I think it's wonderful to see our governments stepping up and being competitive." She said the company’s expansion project will focus on producing lighter, more efficient automobile transmissions and power train parts. The $101 million from the two governments will be used to purchase equipment and will fund research and development of new products.

"The 1,200 additional jobs will be right here in Guelph, and that's in addition to the existing jobs that will be protected," she said. "The funding is absolutely key to enabling the investment."

In addition to incentive grants, Linamar’s CEO praised the nation and province’s tax rate. "Our tax rate is a huge advantage, the lowest in the G7," she said. "We have an increased focus on free trade, which I think is fantastic to open up new markets to Canadian companies."

The province's incentive grant will come from its 10-year, $2.5-billion Jobs and Prosperity Fund, said Premier Kathleen Wynne.

"This is an example of the kind of investment, the kind of partnership that we can enter into because of that fund," she said. "The provincial and the federal governments both have a role to play in partnering and in making sure that growth can continue."


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