$15M in FedDev Ontario Funding Awarded for Advanced Manufacturing
Ontario’s advanced manufacturing industry is a top driver of Canada’s economic performance. In 2015 alone, manufacturing sales in Ontario contributed nearly $290 million in GDP and sustained nearly 800,000 high-quality jobs. One of the reasons for this success is because Ontario government funding supports manufacturing investments that lead to productivity improvements, innovation, and international exports.
Ontario-based manufacturer of flooring and countertops, Hanwha L&C Canada Inc., was recently announced as a recipient of repayable funding through FedDev Ontario’s Advanced Manufacturing Fund (AMF). Up to a $15 million in Ontario business loans will be used to expand production lines to create high-value stone countertops. The investment will support over 195 full-time jobs in London Region.
The Advanced Manufacturing Fund promotes productivity improvements for manufacturers in Ontario. By providing repayable funding, FedDev Ontario stimulates capital investments and helps businesses access the capital required to expand operations. This supports economic growth and diversification.
Ontario Government Funding Enhances Product Offering Diversity
Fortune 500 company, Hanwha L&C, is a South-Korean manufacturer with Canadian operations based in London, Ontario. In 2008, they first received government funding to build a manufacturing facility and have since grown to surpass its production limits. To overcome these capacity issues, Hanwha L&C Canada once again sought government funding to support facility expansion.
Through their expansion, Hanwha will install innovative technologies that increase their product offerings. Currently, their Canadian manufacturing facility can process high-durability plastics, but accessing the market for stone-based flooring and countertops increases the company’s sales potential. This will also help to bolster international exports and drive profits into the future. Up to $15 million in repayable funding through the Advanced Manufacturing Fund will extend cash flow and help Hanwha make the investment sooner.
“Canada’s manufacturing sector is a cornerstone of the economy. New advanced technologies and investments in state-of-the-art capital equipment are lowering production costs, increasing productivity and allowing for the creation of new innovative products and new well-paying jobs that will contribute to a stronger middle class.”
– The Honourable Navdeep Bains, Canadian Minister of Innovation, Science and Economic Development
Through expansion, Hanwha will create 85 new jobs will be established at the company’s facility. Additional capacity will have spinoff effects throughout the economy; it’s expected an additional 100 indirect jobs will be created throughout Hanwha’s manufacturing supply chain.
Ontario Small Business Funding Supports Manufacturing Growth and Development
Ontario’s economy requires manufacturers to continue bringing new, innovative products to market. To do so, small and mid-sized business can access Ontario government funding to sustain their company’s growth and expansion efforts.
Although Hanwha was successful with the Advanced Manufacturing Fund, please note that funding has depleted and is no longer available. Although the program may receive more funding in the future, you may also wish to consider the Southwestern Ontario Development Fund (SWODF):
Southwestern Ontario Development Fund (SWODF) Business Expansion Grants
The Southwestern Ontario Development Fund provides a combination of small business grants and repayable loans to growth-oriented manufacturers across Ontario. The program seeks to attract new commercial investments, increase product exports and create sustainable jobs within the region.
Projects with an investment of less than $10 million may receive up to 10-15% of expenses to a maximum $1.5 million in Ontario government grants. Projects surpassing $10 million in expenses may be eligible for an additional $3.5 million in business loans.
Access Ontario Government Funding to Support Manufacturing Expansion Activities
Small and mid-sized manufacturers should consider accessing government grants and loans to accelerate their business expansion projects. Like Hanwha’s success, receiving funding can enable new projects that boost productivity, lower costs, and provide access to new markets.
If your manufacturing business has a similar project or is in a related sector, contact Mentor Works to discover if you’re eligible for a range of government grants and loans. Our team of Government Funding Planners have an understanding of the full small business funding landscape and can assist your funding application process.
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- Top Funding Programs for Hiring and Training for Spring 2023
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