The Canadian government is sending more than C$3.6 million (US$3.37 million) to toolmakers in southwestern Ontario to help them expand and invest in new equipment.
The funds are part of the C$62 billion (US$58 billion) Canada's Economic Action Plan designed to boost small and midsize manufacturers.
Investments announced Jan. 26 include five different mold makers all from the Windsor, Ontario, suburb of Oldcastle and many that work extensively in the auto industry.
The funds will be a big help to companies that have wanted to invest in new equipment and technology but had problems accessing private financing, said Randy Soulliere, general manager and a partner of Platinum Tool Technologies Inc.
This is going to be good for the industry, especially in this area, he said in a June 27 telephone interview.
Platinum will receive one of the largest single investments from the latest announcement, with C$1.2 million (US$1.12 million) going toward a 6,000-square-foot addition and new equipment. The expansion will help the injection mold toolmaker launch new business in the aerospace industry, he said.
Platinum has had interest from aerospace firms in the past, but needed the upfront investment in specific equipment and space to be an authorized supplier, and it was hard to find cash available for those investments, with the tight credit market recently.
The 65-employee shop expects to add 10 jobs by the end of its fiscal year in August, Soulliere said. Platinum also will add a gun drill and a five-axis, high-speed milling machine. The company expects to begin construction within the next two weeks.
Integrity Tool & Mold Inc., another injection mold maker, will use its C$906,000 (US$850,893) to upgrade its design software and buy new computer numerically controlled equipment, said General Manager Scott Allen.
The company has seen its business start to pick up in recent months, he said, and the new equipment will help it seek out new customers.
Other mold makers receiving funds are:
* Confidence Tool & Mould Design Inc., C$771,250 (US$724,172) over two years for capital expansion and diversification into new markets.
* Midwest Precision Mould Ltd., C$230,000 (US$215,897) over two years for new machinery to increase production capacity.
* Omega Tool Corp., C$699,000 (US$656,049) to upgrade machinery and increase productivity.
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