ON: Formet Industries Investing in Auto Sector, Creating Jobs in St. Thomas
8 Apr, 2016
Ontario is partnering with automotive supplier Formet Industries in St. Thomas to develop new products and grow its business, creating 66 new jobs and retaining over 1,300 positions.
With $1 million in support from the Southwestern Ontario Development Fund, Formet has collaborated on the development of automotive structural components. These components provide added strength and safety and a reduction in vehicle weight. The company will supply the components to an automaker with operations in Ontario.
Ontario's support secures an overall project investment exceeding $23 million, with the project scheduled for completion by the end of 2018. Formet is a manufacturing division of Cosma International, which in turn is part of Magna International, the world's second-largest auto supplier by sales.
The Southwestern Ontario Development Fund is modelled on the proven Eastern Ontario Development Fund. Together these two funds have helped to create and retain more than 41,000 jobs and have attracted more than $1.8 billion in investment.
The funds typically cover up to 15 per cent of eligible project costs, with the recipient company funding the remainder from its own resources. This leveraging of private sector investment provides enhanced value for taxpayers.
Attracting new investment to Southwestern Ontario is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
- Ontario is one of the top jurisdictions in North America for vehicle production and the only sub-national jurisdiction to have five major global automotive assemblers: Fiat Chrysler Automobiles, Ford, General Motors, Honda and Toyota, as well as truck manufacturer Hino.
- Ontario’s assembly plants are supported by an advanced supply chain that comprises over 700 part suppliers and more than 500 tool, die and mould makers.
- The auto industry contributes around $16 billion annually to Ontario’s GDP.
- Since October 2012, Ontario has committed to invest over $88 million through the Southwestern Ontario Development Fund, leveraging private-sector investment of more than $1 billion. These investments are helping to create over 4,000 new jobs and retain more than 19,000 existing jobs in the region.
- Ontario is accepting applications for the Southwestern Ontario Development Fund from qualified businesses that are growing and creating jobs. Sectors eligible for the fund include advanced manufacturing, food processing, life sciences, information and communications technology, tourism and cultural industries.
- Ontario's five-year, $400-million Business Growth Initiative is helping to grow the economy and create jobs by promoting an innovation-based economy, helping small companies scale-up and modernizing regulations for businesses.
- As part of the Business Growth Initiative, Ontario announced the Automotive Supplier Competitiveness Program to help smaller auto parts companies adopt the latest technologies, plus support for the Canadian Urban Transit Research and Innovation Consortium to support R&D and commercialization of technologies.