The Southwestern Ontario Development Fund (SWODF) is set to provide five local auto and manufacturing plants with a collective $2,086,838 in government grants. We break down how these funds are distributed and the estimated amount of jobs the funding will produce.
Vic Fedeli, Ontario Minister of Economic Development, Job Creation and Trade, visited Windsor to announce the $2 million in grants being provided to APAG Elektronik Corp., Precision Stamping Group, Universal Fabricating Inc., Global Pack Packaging Solutions Inc., and Laval Tool and Mould Ltd.
APAG Elektronik Corp. Builds Their First North American Production Plant
APAG Elektronik Corp. is a Switzerland-based firm that designs, develops, and produces lighting and electronics for automotive manufacturers such as Audi, Porsche, BMW, Ford, Lamborghini, and Mercedes-Benz. The company is an industry leader for their state-of-the-art production and development of high-quality automotive parts.
APAG Elektronik Corp. received $500,000 in Ontario government funding to help the company build its first production plant in North America.
The new production plant will be built in Windsor, Ontario, will create 134 jobs, and aims to be completed by March 2024. Fifteen of these new positions will be high-tech research and development, 30 to 40 positions will be administration, and the remainder will be in production and operations workers. Hiring has already begun in the building’s front office by bringing on hardware, software, and production engineers.
Precision Stamping Group Generates New Jobs
The Windsor-based company Precision Stamping Group produces stampings for multiple OEM supplier facilities that are used by GM, Chrysler, Nissan, and Honda. They currently have 20-25 people working at Precision Stamping Group in Lakeshore, and they expect to quadruple their workforce and create a second shift—and possibly a third shift.
Precision Stamping Group received $813,750 in business expansion grants towards a $16 million project that will produce the next generation of high-strength steel products.
The grant will help the company increase its production and exports to the U.S. by creating 20 new jobs. The project aims to help vehicles become lighter, more fuel efficient, safer, and more environmentally friendly. The project is expected to be completed by August 2021.
Universal Fabricating Secures Business Expansion Grant
Universal Fabricating is a manufacturing plant located in Kingsville, Ontario and started in the basement of Abe Wiebe and Abe Harms in 2004. Originally focusing on manufacturing small steel brackets for automotive suppliers, the company later grew to developing heating systems, carts, conveyors, and specialized packing lines for the greenhouse horticulture industry. Currently, they have 55 employees and continue to focus on the needs of their automotive and greenhouse clients.
Universal Fabricating received just under $300,000 towards investing in new equipment to increase production.
The project aims to be completed in October 2022 and is expected to create 13 new jobs. Initiatives like this are just one of the many ways that business expansion grants help Canadian businesses scale themselves into becoming a globally-competitive firm.
Global Pack Packaging Solutions Aims to Create New Recyclable Packaging
Global Pack Packaging Solutions creates and develops packaging for food and non-food-based industries. They began in 1998 as Bell Plastiform Industries but have grown and adapted to meet the ever-changing demands of the packaging industry.
Global Pack Packaging Solutions is set to receive $300,000 to invest in new equipment and create recyclable packaging products for produce and food processors.
The project is expected to create 15 new jobs and should be completed by October 2022. The Canadian government has multiple environmental grants for helping businesses to reduce their carbon footprint, such as the Zero Plastic Waste Initiative and the Waste Reduction and Pollution Prevention Fund (WRAPP).
Laval Tool and Mould Diversifies Their Product & Services
Laval Tool and Mould was founded in 1975 by Jonathon Azzopardi, who learned the tooling trade through apprenticing before becoming an entrepreneur. The company has become a leader in innovative and complex compression moulds that range from government applications, the military, household products, recreational vehicles, and more.
Laval Tool and Mould will receive $185,210 from the Southwestern Ontario Development Fund to diversify its product and service offerings, increase productivity, and shorten lead times.
The project is expected to create 12 new jobs and will be completed by December 2023.
Learn More About the Southwestern Ontario Development
SWODF was created as an incentive for companies with large-scale projects to invest in new facilities and equipment that directly result in an increase in productivity, as well as bring on new employees.
By applying for the Southwestern Ontario Development Fund, companies may leverage up to 15% of project expenses to a maximum $5M in business expansion funding.
There is an upcoming application period of March 5, 2020 – April 20, 2020.
For Canadian manufacturers interested in starting a business expansion project, Mentor Works has developed the Key Tips: Expanding Production slide deck to share some of the top programs and best methods to ensure projects stay on time, on budget, and reduce impact on company cash flow.