McGuinty Government Partners With Honda Canada To Bring Innovative Engine Facility To Ontario

Archived Release

McGuinty Government Partners With Honda Canada To Bring Innovative Engine Facility To Ontario

Honda Greenfield Investment To Create 340 New Jobs, More Opportunities For Families TORONTO, May 17 - Economic Development & Trade Minister Joe Cordiano joined Honda Canada executives today to announce a $154 million greenfield investment that will create 340 jobs and increase the company's presence in the province by bringing a unique new fully integrated powertrain facility to Alliston. "Our government has worked hard and aggressively to attract new automotive investments like this innovative Honda engine facility," said Cordiano. "We're creating the best environment for our auto industry to compete with any jurisdiction around the globe. Honda's project is the latest in an unprecedented line of new automotive investments worth more than $7 billion for our province that have brought thousands of jobs that families can rely on for years to come." "This investment is great news for families and businesses in Alliston and I want to thank Honda for their decision to expand in this community," said Premier Dalton McGuinty. "Honda knows that Ontario's workforce is among the most productive in the world and our Medicare system gives investors the stable business costs they're looking for. So we will keep working to make sure Ontario remains the world's first choice for auto manufacturing." Ontario is investing up to ten per cent of the total project cost of the new engine facility for public infrastructure. The new plant will build fuel-efficient four-litre engines for its Civic models, with production beginning in 2008. The integrated engine facility will supply one of Honda's two assembly plants with the capacity to adapt to different and more technologically advanced models in the future. Honda Canada built its first vehicle assembly facility in Alliston in 1986, an adjacent second truck assembly facility in 1996, and now in 2006 Honda is expanding the size of the site to make way for the new powertrain plant. Last year Honda produced more than 385,000 vehicles at its two Alliston assembly plants, making it the third largest producer of cars and light trucks in the province. Honda currently employs 4,300 workers at its Alliston facilities and another 400 at its Scarborough headquarters. The McGuinty government has aggressively pursued new automotive projects by investing strategically in ways that will build a culture of innovation across the industry, to ensure automotive industry production in Ontario is globally competitive and job creating. "We're on the side of Ontario families who depend on the auto sector for jobs and opportunities," Cordiano added. Honda's announcement is the most recent between the government and Ontario automotive companies. Last week the Premier and Minister Cordiano joined Linamar to announce the company's growth strategy, the largest single investment by an independent auto parts maker in Canadian history. Linamar will establish a new technology and training centre and expand its operations to create 3,000 new jobs in the Guelph area. In April the government joined with Toyotetsu Canada, a Toyota parts supplier, to announce plans to bring the company's first Canadian facility to the town of Simcoe, creating 250 high value jobs at start-up. In January the government partnered with Nemak on its project to launch a new innovative engine block process. www.ontariocanada.com Backgrounder ------------------------------------------------------------------------- ONTARIO AUTOMOTIVE INDUSTRY INVESTMENTS Creating Jobs and Prosperity for Ontario Families Contact Info The McGuinty government supports Ontario families who rely on a strong and vibrant auto sector by working to strengthen the competitiveness of our industry. Through Ontario's targeted strategies, including the Ontario Automotive Investment Strategy, the government invests in key areas such as innovation, high-value skills training, infrastructure, environmental technologies and energy efficiency. Ontario's strategies have leveraged almost $7 billion in automotive investments and anchored thousands of long-term, high-value jobs. Ford - Ontario invested $100 million in Ford's $1-billion Oakville project to create its first Canadian flexible manufacturing facility and for a new research and development centre focusing on fuel cell technology. General Motors - Ontario provided $235 million to support GM's $2.5-billion Beacon Project, a multi-faceted investment that supports GM's vehicle design and manufacturing capabilities at plants in Oshawa, St. Catharines and at CAMI in Ingersoll. Navistar - A $270-million International Truck and Engine Corporation (Navistar) investment in Chatham and Windsor received Ontario investments of $32 million to support a new R&D Centre in cooperation with the University of Windsor and skills training for workers at the Chatham truck assembly plant. Toyota - Toyota's $1.1-billion investment at Woodstock includes $70 million in provincial support for skills training and infrastructure. The new Toyota plant will bring at least 2,000 new high-value, well-paying jobs to Woodstock. DaimlerChrysler - Ontario is investing $76.8 million to help increase flexibility and put in place new technologies at the Windsor Assembly Plant, and invest in its Brampton facility through the company's $768 million commitment. Ontario's investment secures the operations at the Windsor and Brampton plants for the next decade. Nemak - Ontario's automotive industry plans include support to the auto parts sector. The government's $6-million investment supports Nemak's $100 million Windsor project to bring new technology to the engine production sector and expand its service to more engine families and companies. Linamar - Ontario's $44.5-million investment supports Linamar Corporation's $1.1-billion Ontario growth plan. The company will create 3,000 new high-value jobs and establish a Technology Centre in Guelph that will spur innovations across Linamar's operations here and abroad. Honda - Ontario is investing up to ten per cent of the total project cost of the new engine facility for public infrastructure to accommodate a new fully integrated engine facility Honda is building in Alliston. The $154 million Honda investment creates 340 new high value jobs and expands the company's presence in Ontario. Supporting Leading-Edge Manufacturing The McGuinty government is working on the side of all of Ontario's advanced manufacturers. Ontario's new $500 million Advanced Manufacturing Investment Strategy is a repayable loans program that helps companies immediately create or adopt leading innovations in areas that boost their productivity and global competitiveness. The government expects to soon call for the second round of proposals to the program. Contacts: Molly Finlay Lisa Roberts Minister Cordiano's Office Communications Branch 416-325-6706 416-325-8773 Disponible en français www.ontariocanada.com For further information: Lisa Roberts, Communications Branch, (416) 325-8773; Kwab Ako-Adjei, Minister's Office, (416) 325-8779 HELP | CONTACT US | PRIVACY | IMPORTANT NOTICES © Queen's Printer for Ontario, 2008-2009 — Last Modified: February 15, 2009 For further information: Lisa Roberts, Communications Branch, (416) 325-8773; Kwab Ako-Adjei, Minister's Office, (416) 325-8779