$6.6 M for manufacturers in southern Ontario
- March 16, 2016
The Federal Economic Development Agency for Southern Ontario (FedDev Ontaro) announces $6.6 million funding for Guelph manufacturers
Guelph, ON, manufacturers Hammond Manufacturing Co. and Ontario Drive and Gear Ltd. will be receiving combined funding of $6.6 million following an annoucement by the Federal Economic Development Agency for Southern Ontario. The projects are expected to create or maintain up to 165 full time equivalent jobs.
Bardish Chagger, Minister of Small Business and Tourism, alongside Lloyd Longfield, Member of Parliament for Guelph, said the funding will help the companies acquire innovative technologies, boost productivity, generate job growth and increase business and export opportunities. This announcement was made on behalf of Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for FedDev Ontario.
The Canadian economy is shifting and traditional industries such as manufacturing must adapt to a more competitive global economy. The Government of Canada is committed to supporting innovative manufacturers, like the Hammond Manufacturing Company and Ontario Drive & Gear Limited, obtain the tools they need to succeed.
The Hammond Manufacturing Company, headquartered in Guelph, received an investment of up to $3.46 million from FedDev Ontario, to buy equipment, improve processes, support expansion to a new facility in Guelph and make facility modifications at both the new location and the existing facility in Guelph. The also recently received a $100,000 investment through FedDev Ontario-funded Canadian Manufacturers and Exporters (CME) SMART Advanced Technologies for Global Growth Program to purchase a new press brake.
"We are proud to partner with the Federal Economic Development Agency for Southern Ontario on this project, which will continue our company's legacy of excellence in Guelph. This investment supports our efforts to improve our processes and systems, which will help us to continue to offer exceptional products for our customers worldwide," says Robert Hammond, president, Hammond Manufacturing Co.
Ontario Drive & Gear Limited, located in New Hamburg, received funding of up to $3.14 million from FedDev Ontario, to purchase new gear manufacturing equipment, expand its engineering department by 10,000-square feet and advance new product lines to become more competitive and reach new markets.
"The FedDev Ontario contribution will enable Ontario Drive & Gear Limited to leverage more than $10 million in private sector financing, allowing us to maintain our competitive position and compete for global market opportunities," says Joel Wright, president, Ontario Drive & Gear Ltd.
These efforts are expected to help the companies increase their competitiveness and productivity, while also boosting sales and increasing export opportunities in new markets. The projects are also projected to have spillover benefits, with increased production benefitting supply chains across southern Ontario and local equipment vendors.