Federal government to announce $7 million in funding for local auto sector manufacturers
Wednesday, February 12, 2020
The Windsor Star/Chris Thompson
Three local auto sector manufacturing companies will be the beneficiaries of more than $7 million in federal funding to be announced Wednesday that is projected to create 42 skilled jobs.
During a Wednesday stop at Laval Tool & Mould Ltd. in Maidstone, Minister of Economic Development and Official Languages Melanie Joly is to announce the funding for Laval, Precision Stamping Group of Windsor and SPM Automation (Canada) of Tecumseh.
“Through that investment it will generate $25 million of more investment because a lot of times the federal government is the first to really invest in these companies and that its good for them because it can attract other investors,” Joly said after arriving in Windsor from Edmonton Tuesday night.
She said these investments will allow one of the three companies to double their revenues by 2024.
Joly, who announced investments in Edmonton Tuesday as part of what she is calling the We’ve Got Your Back tour, said she will spend the rest of the week in Southwestern Ontario making more announcements in Leamington, Sarnia and London that will create 1,000 new jobs.
“My job as minister of economic development is not to defend an economy that is really disconnected from the reality of people, my job is to make sure we defend the economic reality of people,” Joly said.
Expected to join Joly for the announcement were her parliamentary secretary and London West MP Kate Young and Windsor-Tecumseh MP Irek Kusmierczyk.
“Today’s announcement will help this vibrant community further develop its network of incredible talent and leading-edge innovation in the evolving manufacturing and auto sectors,” Kusmierczyk said in a news release.
“These sectors are playing a key role in shaping the future of Windsor-Essex. Our government is making investments that will enable businesses in all regions of the country to scale-up and access the capital needed to succeed.”
The repayable funds are coming from the Federal Economic Development Agency for Southern Ontario.
Laval Tool & Mould will receive $1.2 million to enhance its existing 44,000-square-foot building, including the adoption of new advanced manufacturing and robotics equipment that will allow the company to offer a full suite of in-house services.
The project is expected to create 12 and maintain 14 skilled jobs.
“These funds will allow us to stay at the forefront of the ever-changing challenge of global tooling and composites,” said Jon Azzopardi, president of Laval Tool & Mould Ltd.
“Investments in advanced technology today ensure all of us a better tomorrow.”
Precision Stamping Group, which manufactures and supplies stamped auto parts to global companies, will receive $4 million to help obtain state-of-the-art advanced manufacturing equipment and technologies needed to expand their capabilities, which will enable them to attract new business opportunities and compete globally in new markets.
The Precision funding is expected to create 20 new skilled jobs.
SPM Automation Canada, which provides innovative automatic solutions for joining plastic materials together, will receive $1.8 million to cover facility improvements including acquiring state-of-the-art equipment and technologies that will support scale-up operations.
The project aims to meet the growing demand for unique welding technology, including the demand for new automotive LED lighting systems will complex three-dimensional shapes. The project is expected to create 10 new skilled jobs.
Last month Premier Doug Ford and Minister of Economic Development, Job Creation and Trade Vic Fedeli visited Windsor to announce $2 million in funding for five local companies that included Precision Stamping and Laval Tool & Mould.