Federal Government Announces Investment in Aerospace Manufacturing
News Release
December 21, 2015 – Mississauga, Ontario – Federal Economic Development Agency for Southern Ontario (FedDev Ontario)
Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, along with Gagan Sikand, Member of Parliament for Mississauga-Streetsville, announced up to $8 million for Cyclone Manufacturing Incorporated to enhance production capacity, expand its services and grow its customer base.
The company produces and finishes aircraft parts, which are supplied to Original Equipment Manufacturers (OEMs). The federal funding will be used to buy and install new equipment, expand facility space and introduce new advanced production lines to help the company produce and finish specialized aerospace components for OEMs. FedDev Ontario's investment will allow the company to produce on a larger scale and enhance its production and finishing technologies and services.
FedDev Ontario's repayable contribution is through the Investing in Business Growth and Productivity initiative, which is aimed at helping established businesses to grow their operations, invest in productivity improvements and compete globally.
Quick Facts
- Cyclone Manufacturing Inc. was formed in 1964 as an aircraft parts manufacturing company for the aerospace industry. The company continues to expand by securing new production contracts with clients that include Airbus, Boeing, Bombardier and Embraer.
- Cyclone Manufacturing Inc. has four locations, totalling 270,000 square feet, in Mississauga and Milton. This project will support the addition of 180,000 square feet of facility space.
- The project has a total cost of over $65 million, resulting in more than $57 million in private sector investments. According to Cyclone Manufacturing Inc., the project is expected to create up to 135 full-time, high-quality jobs in Mississauga by 2018.
- In 2014, Cyclone Manufacturing Inc. received a contribution of up to $147,000 from the National Research Council Canada's Industrial Research Assistance Program (IRAP) to optimize titanium material removal rate for the aircraft industry.
- The aerospace industry contributed more than $29 billion to Canada's GDP in 2014. This sector includes 180,000 jobs, most of which are skilled labour.
- The manufacturing sector is a major contributor to Canada's economy, employing more than 1.7 million Canadians, of which nearly 750,000 live in Ontario. It also accounts for half of the business R&D in Canada and generated sales of $619.1 billion in 2014, including $284.6 billion in sales for Ontario alone.
Quotes
"In order to build a strong, prosperous Canada, we need to drive innovation as well as advance and strengthen our manufacturing sector. Our investment in Cyclone Manufacturing will help fuel growth in the aerospace sector, and will ultimately help build a stronger economy by generating more opportunities for product expansion and market growth."
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development
"The investment in Cyclone will help build a stronger manufacturing supply chain for the aerospace industry and will lead to the creation of high-quality jobs in this region. This is excellent news for southern Ontario, as it will support growth for our aerospace industry."
– Gagan Sikand, Member of Parliament for Mississauga-Streetsville
"This funding will allow our company to better meet consumer needs in the aerospace industry. We will be able to purchase new equipment, and expand our production space, which will result in a new production line."
– Andrew Sochaj, President, Cyclone Manufacturing Inc.
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