Government of Canada invests in innovative automotive technologies

News release

Over $5 million for two Windsor companies to support automotive innovation and create nearly 160 jobs

January 14, 2019 – Windsor, Ontario

Canada’s automotive sector is strong and uniquely positioned to design and build the cars of today and tomorrow, and our highly skilled workforce is the driving force behind it.

Today, the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for FedDev Ontario, announced a combined FedDev Ontario contribution of more than $5 million to APAG Elektronik Corp. and Service Mold + Aerospace Inc. to develop and adopt innovative technologies, scale up and create good middle-class jobs. This announcement was made as he prepares to attend the 2019 North American International Auto Show in Detroit, Michigan.

  • APAG Elektronik Corp., which manufactures electronic control parts and LED lighting for automobiles, is receiving more than $4 million to help establish a new Windsor facility that will serve as its North American headquarters, bringing 138 new skilled jobs to the region. FedDev Ontario funding will allow the company to install state-of-the-art equipment and complete renovations to its new 32,000-square-foot facility.
  • Service Mold + Aerospace Inc., an integrated tool and mold manufacturer for the automotive and aerospace industries, is receiving $1.06 million to install new state-of-the-art equipment and create up to 21 jobs at its recently built 34,000-square-foot manufacturing facility in Windsor. With new equipment and technology, the company can produce components as large as 54 feet by 12 feet, which makes the new facility one of the largest machining centres in southern Ontario.

Investments in the automotive sector are part of the Government of Canada’s Innovation and Skills Plan, a multi-year strategy to create well-paying jobs for the middle class and those working hard to join it.

Quotes

“Our government is taking action to support our Canadian auto sector workers. Today’s investment in APAG Elektronik Corp. and Service Mold + Aerospace Inc. is great news for Windsor and all of Ontario. Together we’re creating good, skilled jobs in the region, and helping to keep our automotive manufacturing industry strong and globally competitive.”
– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for the Federal Economic Development Agency for Southern Ontario

“APAGCoSyst is established in Europe for automotive electronics and we are excited to launch our North American production facility in Windsor, Ontario. The FedDev Ontario support announced today has helped us to do this, and will result in improved productivity and competitiveness. In addition, our talent needs will lead to technical recruitment and skill-building to further regional diversification.”
Anand Kanoria, Vice Chair of the Board of Directors & Joint CEO – Operations, APAG Elektronik Corp.

“We appreciate that FedDev Ontario has provided a repayable contribution to help fund our expansion. This support has aided Service Mold + Aerospace to add equipment that has enabled us to attract new business that otherwise would not be capable of winning.”
Martin Schuurman, President, Service Mold + Aerospace

Quick facts

  • The automotive sector, one of Canada’s largest manufacturing sectors with over 500,000 direct and indirect jobs, contributes $18 billion to Canada’s gross domestic product (GDP) and is one of the country’s largest export industries.

  • APAG Elektronik Corp. is a subsidiary of the global company APAG Holding AG, headquartered in Zurich, Switzerland. The company is widely known for the advanced functionality, precision and connectivity of its automotive electronic control units and LED lighting for braking systems, climate control and interior lighting in vehicles.

  • Established in 1987, Service Mold + Aerospace Inc. is a Tier 2 supplier primarily to the automotive and aerospace sectors. Within the automotive market, the company builds molds and tools for suppliers of General Motors, Tesla, Ford, Subaru, BMW and Honda.

  • In addition to FedDev Ontario’s repayable contribution, APAG Elektronik Corp. will leverage foreign investment of $7.4 million from its parent company. FedDev Ontario’s repayable contribution to Service Mold + Aerospace Inc. is leveraging $15 million in public and private sector funding.

  • FedDev Ontario is now accepting new projects, using a single application form, through three simplified funding streams that have been designed to meet the needs of innovators and job creators. For more information, visit www.FedDevOntario.gc.ca.

Associated links

Contacts

Dani Keenan
Press Secretary
Office of the Minister of Innovation, Science and Economic Development
Tel.: 343-291-1710

Media Relations
Innovation, Science and
Economic Development Canada
343-291-1777
ic.mediarelations-mediasrelations.ic@canada.ca


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