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The Ontario government is providing $3.6 million in funding support to help three local manufacturers and the City of Windsor with expansion projects valued at a combined $19.8 million.
The funding is a mix of grants and loans from the Southwestern Ontario Development Fund.
“It will sustain us,” said Crest Mold Technologies president William Cipkar, whose firm is getting a loan of $1.3 million to support an $8.7-million expansion and purchase of new equipment that will create 10 new jobs.
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“If we’re not going ahead, we’re going backwards. We need to always invest in the highest tech and equipment that you can buy.
“It guarantees a future for everyone at Crest Mold.”
Crest Mold will add a 7,000-square-foot expansion and the increased operational capacity and technology upgrades will allow the company to re-shore some work.
Select Tool also received a loan of $375,000 to back a $2.5-million expansion that will add 26,000 square feet, new equipment and 14 new jobs.
The City of Windsor received a $1.5-million grant that will be used to upgrade infrastructure and site servicing in support of the NextStar Energy battery plant. The total cost of the work will be $4.8 million.
Bears Performance, which specializes in customized axle assemblies, suspensions, drive lines, wheel hubs, engine blocks and engine parts, received a grant of $500,000 to support an overall investment of $3.7 million.
“We are excited about the meaningful impact this opportunity will bring, serving as a vital foundation for our continued growth and success,” said Bears Performance president Keith Grondin.
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“It will drive our mission forward, enable us to advance cutting-edge CNC and automation equipment and attract new talent to strengthen our elite team.”
The funding will result in the creation of five new jobs at Bears Performance, which is a brand name in the racing industry.
Maintaining the region’s reputation as home to one of the world’s three recognized centres of excellence for tool and mould-making is a key goal of the provincial government’s Southwestern Ontario Development Fund.
“We know advanced manufacturing is essential for our economy,” said MPP Andrew Dowie (PC — Windsor-Tecumseh), who made the announcement Friday at Crest Mold.
“Our local companies know their stuff and they’re well-respected for the quality of the service they provide, the tooling, and the quality of the product that’s shipped to assemblers,” he said.
“We know these are the best of the best, and to stay that way this investment keeps these companies at the forefront of technology. It makes them at the top of their game and competing with the best on the world stage.”
Dowie said the provincial funding not only helps get projects across the finish line, but also builds confidence in the eyes of potential lenders when local companies approach them for financial backing.
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“This is an investment in our community and leverages other investments companies are making and gives them that certainty that we have their back,” Dowie said.
“It’s effectively a source of income they can go to their lenders with to say ‘I have this seed money. The risk you have in investing in this project is now diminished because there’s the backing of the provincial government.’”
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Dowie added that government funding has become particularly useful during a time when the auto industry is unsettled as it transitions towards an electric future.
“What I’ve heard across Ontario, the opportunity to get money for expansions has tightened up,” Dowie said.
“They’re not finding lenders willing to come to the table as much as in the past. This helps address that.”
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