London Manufacturer Builds New Hot Stamping Facility

News Release

$5 million in government contributions will help new facility produce lighter, more efficient automotive parts and create over 40 skilled jobs

October 13, 2017, London ON                          

Supplying parts in the automotive industry is highly competitive and requires continuous innovation. That is why the governments of Canada and Ontario are supporting the adoption of new manufacturing technologies and processes, especially those that lower fuel consumption and improve safety for Canadians.

Today, Kate Young, Member of Parliament for London West, Peter Fragiskatos, Member of Parliament for London North Centre, and Deb Matthews, Member of Provincial Parliament for London North Centre, announced that Sodecia London is receiving a total of $5 million from both levels of government.

The announcement was made on behalf of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), and the Honourable Jeff Leal, Ontario Minister Responsible for Small Business.

Sodecia London has built a new 200,000-square-foot hot stamping facility in London’s Innovation Park. These contributions will allow Sodecia London to adopt advanced technologies to increase productivity and diversify its products, leading to increased competitiveness and participation in global markets. Hot stamping technologies produce lighter weight and stronger auto parts, which improves fuel efficiency and occupant safety.  

Through this project, Sodecia London expects to create up to 44 skilled manufacturing and management jobs. This investment expands and consolidates the presence of Portugal-based Sodecia Group in London.


Quotes

“Sodecia London’s new facility is proof that this region is a destination of choice for companies looking to grow and remain competitive in global markets while creating jobs locally.”

- Kate Young, Member of Parliament for London West

“The Government of Canada is proud to invest in innovative companies, like Sodecia London, which are helping to diversify the economy, create jobs and bring new ideas to the forefront each and every day.”

- Peter Fragiskatos, Member of Parliament for London North Centre

“Canada's auto parts industry is a fundamental part of our manufacturing sector. The Sodecia Group choosing London for its new hot stamping facility is an example of how attracting global investment creates jobs and opportunities for Canadians now and in the future.”

- The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Federal Economic Development Agency for Southern Ontario

“I’m very pleased our government continues to invest in southwestern Ontario. This investment will not just create new jobs, but it will ensure hundreds of people remain employed in their skilled fields. I look forward to seeing the positive impact this project will bring to the people of London and our region.”

- Deb Matthews, Member of Provincial Parliament for London North Centre

“The auto manufacturing sector is a key driver of Ontario’s economy, which is why our government is committed to help companies like Sodecia adopt the latest in advanced technologies to grow their business and increase competitiveness. Our investment in this major local employer will help bring even more highly-skilled jobs to the London area and strengthen Ontario’s economy.”

- The Honourable Jeff Leal, Ontario Minister Responsible for Small Business

“This investment in hot-stamping is in line with the company’s strategy to produce lightweight, safe and cost-effective products. We are very appreciative of the support from the governments of Canada and Ontario for this project which combines technology with the development of a strong workforce distinguished by its high skills.”

- Sonia Moreira, Chief Financial Officer, Sodecia North America

“We are pleased to support Sodecia London through the SMART program to help the company integrate a new capability in the London plant, create new jobs and substantially increase export revenues. SMART is an important program that continues to support many manufacturers’ business growth and competitiveness.”

- Ian Howcroft, Vice President, Canadian Manufacturers & Exporters Ontario

Quick Facts

  • Established in 2011, Sodecia London is a tier 1 supplier to the automotive industry, specializing in the manufacturing of vehicle frame parts. The company is the Canadian entity of the Portugal-based Sodecia Group.

  • To run this new facility, the company expects to inject an additional $25 million annually into its local supply chain, benefitting many other businesses in southern Ontario.

  • FedDev Ontario is providing a repayable contribution of up to $3.5 million through the Investing in Business Growth and Productivity initiative.

  • The Government of Ontario is investing an additional $1.5 million through the Southwestern Ontario Development Fund.

  • Since 2013, the Southwestern Ontario Development Fund and Eastern Ontario Development Fund have helped to create and retain approximately 45,000 jobs and attracted approximately $2.2 billion in investment. The funds cover up to 15 per cent of eligible project costs, with the recipient company funding the remainder from its own resources.

  • Sodecia London also received $100,000 through the FedDev Ontario-funded Canadian Manufacturers and Exporters SMART Advanced Technologies for Global Growth program to purchase new equipment.

  • The Sodecia Group invested $15 million in London to establish the Sodecia Global Tech Automation Centre (GTAC). This research and development centre assembles automation systems for other Sodecia plants around the world. Canada’s auto supply chain is home to approximately 700 parts suppliers. In 2016, the province of Ontario was the largest vehicle-producing jurisdiction in North America.

Associated Links

Contacts

Karl W. Sasseville
Press Secretary
Office of the Minister of Innovation, Science and Economic Development
343-291-2500

Blair Ostrom
Office of the Ontario Minister Responsible for Small Business
416-314-1431


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