Custom injection molder PM Plastics Ltd. will invest about C$3.8 million (US$3 million) over five years to produce battery components for hybrid vehicles.
The Windsor, Ontario-based private company will buy injection molding equipment and automation systems for assembly, plant manager Jeff Field said in a telephone interview.
The customer wants to remain unnamed, he said.
PM will receive a government grant of about C$565,000 (US$449,000) to aid with equipment purchases. The money comes from Ontario's Next Generation of Jobs Fund, which is designed to create and protect jobs in the province.
PM's project will create 42 jobs in five years, Field said.
``Manufacturing components for alternative energy-based vehicles provides us with a more diverse product line and is an excellent example to show the innovative and creative ability of the PM Plastics team,'' he said.
Ontario has committed C$1.15 billion (US$913 million) to the Next Generation of Jobs Fund. The fund can contribute as much as 15 percent of the money that companies use to invest in research and retooling for the future.
Part of the provincial government's stated economic strategy is to support companies that are creating jobs in the eco-friendly and high-tech sectors.
Hybrid vehicles can reduce greenhouse gas emissions by more than 25 percent, the Ontario Ministry of Economic Development said in a news release. According to ministry estimates, PM's new machinery and manufacturing process will boost productivity and improve energy efficiency by nearly 60 percent.
The 20-year-old firm specializes in auto fuel and air induction systems and employs 60.
Field said PM sales in 2008 were about $8 million (US$6.4 million). The contract to make battery parts will be worth C$9.1 million (US$7.2 million).