AUTO PARTS INVESTMENT
$5M in federal grants to local firms
Just prior to entering a high-level meeting with General Motors CEO Mary Barra on Monday in a bid to save auto manufacturing jobs, federal Economic Development Minister Navdeep Bains announced that Ottawa will invest $5 million in Windsor to help create auto jobs of the future.
Out of its FedDEV Ontario fund, Bains handed out $4 million to help Swiss-based APAG Elektronic Corp. establish its new North American headquarters locally on Rhodes Drive.
The company, which manufactures electronic control parts and LED lighting for the auto sector, expects to create nearly 140 highly skilled engineer, research and production jobs in the coming months. Bains also announced his government will contribute $1.06 million to Service Mold & Aerospace to install new state-of-the-art equipment and create over 20 jobs at its 34,000 sq. ft. manufacturing facility in Windsor.
While the investment is great news for the city’s automotive future, Bains was also focused Monday on communicating to Barra how GM’s decision to close its manufacturing plant in Oshawa was wrong and vowed the federal government is prepared to do whatever it can to reverse the decision — including putting new incentives on the table.
“Our government has been very clear in support of the workers in Oshawa,” Bains said. “We think GM is making a big mistake. All options will be on the table. We are going to work closely with Mary Barra on GM’s future in Canada and specifically, Oshawa.” The minister noted how presently there are 500,000 jobs connected to the auto sector across the country and maintains that continued investment by the federal government is evidence of its support to ensure auto sector companies continue to remain in Canada and expand.
“We see very strong value when it comes to the auto sector in Canada and the government is willing to step up,” Bains said. “We will fight for the workers and want to be part of the solution.”
As evidence of that support, Bains highlighted Monday’s $4-million investment by his government in support of helping APAG and its new 32,000-square-foot-facility get off the ground in Windsor. “This announcement is great news for Windsor and solidifies the city as a key economic driver when it comes to the auto sector,” he said. “We know this sends a positive signal to suppliers as it indicates (government) investments are being made in Canada. “Canada is open for business and we have world-class talent. That’s what today’s announcement is about. We are proud to be a partner in this.”
The Swiss company, based in Zurich, is firmly entrenched in Europe with a 65-year history as a family operated business. APAG Elektronic did its homework before selecting Windsor as its first home in North America, said Johannes Popp, the company’s CEO of corporate strategy and business development.
The company’s $11-million investment was a decision based on availability of local engineering and production talent, strong community support that included tax incentives under the city council’s Community Improvement Plan (CIP), plus senior government incentives.
The Windsor Essex Economic Development Corporation also played a key role in securing the company in Windsor.
Aside from electronic components for LED lighting, the company also makes components for braking systems, climate control and interior lighting. The company already has a contract for production at the new plant with Chrysler and Cadillac and expects to begin full operations in about month, Popp said.
“We will generate jobs,” he said. “I am more than convinced we will generate 150 or 160 jobs in a short time.”
Another plant opened recently by the company in Czech Republic “is more than full” so APAG is already “thinking about moving some of the production here.” Service Mold & Aerospace is a supplier for both the automotive and aerospace industries. The company builds moulds and tools for suppliers of GM, Tesla, Ford BMW and Honda.
“This (government funding) has aided Service Mold & Aerospace to add equipment that has enabled us to attract new business that we otherwise would not be capable of winning,” said Martin Schuurman, the company’s president.
We see very strong value when it comes to the auto sector in Canada and the government is willing to step up.