General Electric breaks ground on Welland factory that will deliver 220 new jobs

Multimodal plant ‘is reimaging how we manufacture,’ CEO says

WELLAND — Friday’s sunny weather seemed to match the festive atmosphere as municipal, regional, federal and provincial politicians met with business leaders to break ground on a 500,000-square-foot GE factory in Welland.

“This event today is the beginning of a big future,” said Mayor Frank Campion.

GE announced in early June that it would site a “brilliant factory” in Welland, replacing operations in Wisconsin due to the U.S. Congress cutting off funding for the Export-Import Bank, the U.S. government’s export credit agency.

The new facility, set to commence operations in early 2018, represents a $165-million US investment in its first phase alone and will initially deliver 220 jobs to the area.

The factory will sit on 75 acres of land in the city’s Harry Diffin Industrial Park.

The multimodal plant capitalizing on digital infrastructure and lean manufacturing techniques will in its first iteration produce GE Power’s reciprocating gas engines. The design, however, will allow for future production to be expanded and shifted into other product lines.

“It is a plant that is reimaging how we manufacture,” said GE Canada CEO Elyse Allan, noting Welland was chosen as a site for several reasons, including logistical advantages with a proximity to U.S. markets; availability of an educated workforce, educational infrastructure and available serviced land made accessible through the contribution of various levels of government.

“We’ve had such fantastic support from academic and government resources,” said Allan.

Ontario Premier Kathleen Wynne was on hand for the occasion. She noted that with the corporation operating in 180 countries, GE could have built the plant anywhere.

GE has landed a conditional grant of $26.5 million through the Ontario Jobs and Prosperity Fund. And earlier this week Welland city council approved a $37.4-million 10year tax rebate for the development.

“What’s going to be here is going to be a leading light, literally,” said Wynne.

“A year ago,” GE vice-chairman John Rice said, “this was a notion … it became an idea 11 months ago,” with the first real conversations beginning at the provincial level about a month later.

“We didn’t pull any punches,” said Rice, noting the company was clear in its desires to quickly establish a state-of-the-art flexible flagship facility.

“She (Wynne) didn’t flinch,” said Rice, adding, “There was never a waiver or question.”

He went on to credit in part a federal focus on opening up foreign trade.

“We aren’t here by accident,” said Rice. “This is a country that understands the importance of global trade.”

Federal International Trade Minister Chrystia Freeland underscored that focus. She said in an era of increased protectionism, Canada is looking to open up its borders to foreign investment.

“Canada is all about building bridges,” she said, marking the event as an upswing for Niagara’s long-suffering manufacturing economy.

“It’s easy to get caught up in fatalism,” she said, adding, “Welland is not yet dead, Welland is up and coming.”