Feds invest $7M in Windsor auto manufacturers for new equipment, jobs

Three automotive manufacturers in Ontario’s Windsor-Essex region are receiving more than $7 million from the federal government to scale and grow their businesses.

Laval Tool & Mould Ltd., Precision Stamping Group and SPM Automation (Canada) offer solutions in stamping, tooling, mould making and plastics. The companies collectively employ 160 people.

Mélanie Joly, minister of economic development and official languages, made the funding announcement Feb. 12 during a tour of Laval Tool & Mould, which engineers, manufactures and tests compression moulds for clients in the automotive industry, including military vehicles, recreational vehicles and heavy trucks.

Laval Tool will use its $1.2 million repayable contribution to adopt new advanced manufacturing and robotics equipment that will allow the company to offer a full-suite of in-house service at its sexisting 44,000- square-foot facility in Tecumseh. The project is expected to create 12 and maintain 14 skilled jobs.

“These funds will allow us to stay at the forefront of the ever-changing challenge of global tooling and composites,” says Jon Azzopardi, president, Laval Tool & Mould, in a statement. “Investments in advanced technology today ensure all of us a better tomorrow.”

Precision Stamping Group (PSG), manufactures and supplies stamped auto parts to global companies. Today, with 75 employees, the company is producing ultra high-strength steel parts for tier one automotive suppliers looking to manufacture lighter-weight vehicles, which will enhance vehicle safety and fuel economy.

PSG will use its $4-million repayable contribution to boost production at its two manufacturing facilities in Tecumseh. The company will invest in state-of-the-art advanced manufacturing equipment and technologies needed to expand capabilities. The project is expected to create 20 new jobs.

SPM Automation (Canada) provides automatic solutions for joining plastic materials together. With a team of 35 employees, the company designs and manufactures automated welding machines that use 80 per cent less energy than conventional 3D welding methods. To expand its market reach, SPM Automation is developing processes to mass-produce its non-contact welding machines for use in global automotive markets.

SPM Automation is receiving over $1.8 million in repayable contributions to cover facility improvements, including acquiring state-of-the-art equipment and technologies that will support scale-up operations. The project aims to meet the growing demand for welding technology, including the demand for new automotive LED lighting systems with complex 3D shapes. The project is expected to create 10 new jobs.

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario), which is facilitating the investment, says the new projects will generate more than $25.6 million in total investment for the region.