McGuinty Government Announces $6-Million Investment With AGS Automotive/Tiercon

Archived Release

McGuinty Government Announces $6-Million Investment With AGS Automotive/Tiercon

Auto Strategy Support Will Boost Innovation, Create 344 Jobs Over Five Years STONEY CREEK, ON, Aug. 28 - The McGuinty government is investing $6 million in the development of advanced and fully integrated bumper systems at AGS Automotive/Tiercon to help the company grow its business and create high-value jobs in Ontario's auto parts industry, announced Minister of Economic Development and Trade Sandra Pupatello today. "Our support is helping AGS invest in the areas that will define the long term success of Ontario's auto industry - product innovation, leading edge and energy efficient technologies, and skills training," said Pupatello. "Ontario has been North America's top vehicle producing jurisdiction for three years straight and we're working with the industry to keep it that way." The project, supported under the Ontario Automotive Investment Strategy, carries a combined provincial and company investment of $62 million. AGS Automotive and Tiercon, members of parent company the J2 Group, will make investments in their facilities across Ontario. The companies currently have operations in Oshawa, Toronto, Cambridge, Windsor and Stoney Creek. Features of the five-year project include: - Research and development of advanced and fully integrated bumper systems, including high performance coatings, lightweight materials and embedded electronics - Leading edge flexible manufacturing technologies - Alternative energy use and waste reduction - Employee training. Contact Info "Strategic use of public funds has proved invaluable in leveraging private sector investments and spurring job creation in communities across Ontario," said Ted McMeekin, MPP for Ancaster-Dundas-Flamborough-Aldershot. "With this investment, AGS and Tiercon can move forward with their growth plans that will contribute to the local economy and deliver new opportunities for its employees." "This investment, and the growth and diversification of our product portfolio it will bring, signals the future for our companies," said Joe Loparco, co-president of both AGS Automotive and Tiercon. "The talents of our employees, plus investments in research and development and new technologies, will enable us to provide ever more innovative and industry-leading products for our customers." Today's announcement is just one more example of how, working together, Ontarians are achieving results for Ontario's manufacturing industry. Other initiatives include: - A new $650-million Next Generation Jobs Fund that will leverage investments in green technologies that help to reduce greenhouse gas emissions and improve environmental sustainability - Ontario's strategic auto investments that have leveraged more than $7 billion in new investments and anchored thousands of high-value jobs - The Advanced Manufacturing Investment Strategy that promotes the use of leading edge technologies and processes and has supported a range of innovative projects that will generate about $670 million in new investment and help create or retain about 4,000 jobs, over five years. Disponible en français www.ontariocanada.com Backgrounder ------------------------------------------------------------------------- DRIVING ONTARIO AUTO INDUSTRY INNOVATION Ontario's auto industry Ontario's auto industry produces cars, light trucks and parts. About 85 per cent of finished vehicles are exported to the United States. Over 90 per cent of Canada's total Canadian auto industry is located in Ontario, and all Canadian-built cars and light trucks are manufactured in the province. Six major vehicle manufacturers operate a total of 12 Ontario assembly plants. Ontario is also home to two heavy truck manufacturers. These plants are supplied by more than 400 major automotive parts manufacturers, which collectively have more than 500 plants in Ontario. Ontario's auto parts and assembly industry employs over 130,000 people and represents about 20 per cent of the province's total manufacturing output. Global industry restructuring, combined with increasing competition for new investment and product mandates, requires ongoing investments in research and innovation, skills training and leading edge technologies to keep Ontario's auto sector prosperous. Ontario's auto investment strategy The McGuinty government's $500-million Ontario Automotive Investment Strategy was launched in April 2004 to leverage private sector investment in key areas supporting the industry's competitiveness: - Skills training to keep pace with new technologies and processes - Innovation and research - Improved infrastructure to support new manufacturing techniques - Energy efficiencies and environmental technologies. Ontario's strategic auto investments have leveraged more than $7 billion in new investments and anchored thousands of high-value jobs. Large-scale auto projects also offer considerable spin off benefits for suppliers, the construction industry, and local economic development. Many of the projects also include linkages with universities and research institutions to help position Ontario as a centre for the research and innovation required for the next generation of vehicles. Next Generation Jobs Fund Building on the success of the Ontario Automotive Investment Strategy, in June 2007 the Premier announced a new $650-million Next Generation Jobs Fund that will leverage investments in green technologies that help to reduce greenhouse gas emissions and improve environmental sustainability. The fund will support green technology investments across a range of sectors including auto, advanced manufacturing, energy production, forestry and agriculture. Projects supported by Ontario's auto strategy - General Motors, Beacon Project - a multi-faceted investment that supports the company's vehicle design and manufacturing capabilities at plants in Oshawa, St. Catharines and at CAMI in Ingersoll. Provincial support of $235 million for a total investment of $2.5 billion. - Ford, Oakville - investments to make Oakville the company's first flexible manufacturing facility in Canada, plus a new research and development centre focusing on fuel cell technology. Provincial support of $100 million for a total investment of $1 billion. - Chrysler, Windsor and Brampton - investments in increased manufacturing flexibility and an environmentally advanced paint shop at the company's Windsor facility and skills training at the Brampton plant. Provincial support of $76.8 million for a total investment of $768 million. - Toyota, Woodstock - first greenfield vehicle assembly plant to be built in Ontario for almost 20 years. Provincial support of $70 million for a total investment of $1.1 billion. - Linamar, Guelph - creation of a Technology Centre, plus investments in research and development and skills training. Provincial support of $44.5 million for a total investment of $1.1 billion. - International Truck and Engine Corporation, Chatham and Windsor - skills training for workers at the Chatham truck assembly plant plus a new research and development centre in cooperation with the University of Windsor. Provincial support of $32 million for a total investment of $270 million. - Honda, Alliston - new engine facility plus investments to upgrade supporting public infrastructure. Provincial support of $15 million for a total investment of $154 million. - Valiant Corporation, Windsor - next generation of robotic vehicle assembly systems. Provincial support of $7.1 million for a total investment of $93 million. - Nemak, Windsor - investment in an innovative engine block manufacturing process. Provincial support of $6 million for a total investment of $100 million. - AGS Automotive and Tiercon, Stoney Creek, Oshawa, Toronto, Cambridge and Windsor - development of advanced and fully integrated bumper systems and expansion of product portfolio. Provincial support of $6 million for a total investment of $62 million. Disponible en français www.ontariocanada.com For further information: Valérie Poulin, Minister Pupatello's Office, (416) 325-6907; Neil Trotter, Communications Branch, (416) 325-6716 HELP | CONTACT US | PRIVACY | IMPORTANT NOTICES © Queen's Printer for Ontario, 2008-2009 — Last Modified: February 15, 2009 For further information: Valérie Poulin, Minister Pupatello's Office, (416) 325-6907; Neil Trotter, Communications Branch, (416) 325-6716