Government of Canada invests nearly $40.5 million in Waterloo and Brant Region businesses and organizations to expand capacity and compete for a more resilient future
News release
FedDev Ontario funding supports 23 businesses and organizations to grow, strengthen domestic supply chains, and advance next-generation defence, security and AI technologies.
July 23, 2026 – Kitchener, Ontario
The Waterloo and Brant regions are home to diverse businesses and organizations that drive economic growth and innovation in many sectors, including advanced manufacturing, technology and defence. As global market conditions evolve, strategic investments will help build capacity, improve productivity, and strengthen competitiveness.
Today, the Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), joined by the Honourable Bardish Chagger, Member of Parliament for Waterloo, and Tim Louis, Parliamentary Secretary to the President of the King’s Privy Council for Canada and Minister responsible for Canada-United States (U.S.) Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy and Member of Parliament for Kitchener—Conestoga, announced a combined investment of nearly $40.5 million through the Regional Tariff Response Initiative and the Regional Defence Investment Initiative (RDII) for 23 Waterloo and Brant region businesses and organizations: Armour Alloys, Ascension Automation Solutions, Bock North America, Canada Steel Corporation, Canadian Strategic Missions Corporation, Cello Products, Cravo Equipment, Eclipse Automation, Emtek Processed Alloys Inc., Fowler Metal Industries, Koolatron, LabsCubed, Massilly North America, MW Canada, Navitas Vehicle Systems, NV Piping Systems, Qorsa Corporation, Quantum Valley Ideas Laboratories, SLACAN Industries, Trylon TSF, VueReal, Walters Inc., and XLTool. Details on the projects receiving support can be found in the backgrounder.
This includes an investment for XL Tool Inc. to modernize operations, and expand domestic technical capabilities, supporting entry into the defence and aerospace markets. The company is undertaking a more than $4-million project, with FedDev Ontario supporting up to $1 million.
The Government of Canada is committed to strengthening Canadian businesses and organizations, supporting workers, enhancing supply chain resilience, and advancing innovative technologies that bolster national security, competitiveness, and long-term economic growth.
Quotes
“The Government of Canada is making strategic investments to help businesses and organizations overcome tariff-related challenges, strengthen Canada’s economic foundation, build Canada’s defence industrial base and advance critical technologies that support our defence and security capabilities. By supporting businesses and workers today, we are building a more resilient economy for tomorrow. I’m thrilled to support the 23 Waterloo and Brant region businesses that are driving growth, innovation, opportunity, and resilience in our communities.”
- The Honourable Evan Solomon, Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario
“Today’s investment is about strengthening businesses and organizations in the Waterloo and Brant regions and communities across southern Ontario, creating good jobs, and building confidence in our regional economy. By investing in businesses and workers today, we are laying the groundwork for a more resilient and prosperous future right here at home.”
- The Honourable Bardish Chagger, Member of Parliament for Waterloo
“Manufacturers and innovators in Kitchener–Conestoga and across Waterloo Region are vital to our economy, creating good jobs and helping our communities thrive. These investments will help businesses and organizations modernize, grow and pursue new opportunities while strengthening long-term prosperity for workers, families and communities and contributing to Canada’s economic sovereignty.”
- Tim Louis, Parliamentary Secretary to the President of the King’s Privy Council for Canada, Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy and Member of Parliament for Kitchener–Conestoga
“This funding will help us enhance our manufacturing capabilities, create high-value jobs, and continue delivering world-class products while strengthening Canada's industrial competitiveness. We also believe that continued investment in education, apprenticeships, and skilled trades training is essential to preparing the next generation of workers and equipping them with the skills needed to support a sustainable, competitive, and prosperous future for Canada.”
- Chris Hergott, VP Operations, XL Tool Inc.
Quick facts
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Through the Regional Tariff Response Initiative (RTRI), the Government of Canada is providing $1.95 billion to help businesses boost productivity, lower costs, strengthen supply chain resilience, and open doors to new markets, enhancing overall competitiveness across all sectors, including steel, aluminum, copper, automotive, food security, and forestry.
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The RTRI is part of a broad set of tariff support measures, including the Large Enterprise Tariff Loan Facility, the creation of a $1 billion Business Development Bank of Canada (BDC) program, a Pivot to Grow initiative, and support for the steel sector through the Strategic Response Fund, as well as the enhancements to the Work-Sharing Program. Together, these efforts demonstrate a commitment to reinforcing Canada’s industrial strength and defending good jobs across the country.
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Delivered by Canada’s regional development agencies, the Regional Defence Investment Initiative (RDII) is a national $379.2-million investment supporting the growth and integration of businesses into domestic and international defence supply chains. FedDev Ontario is delivering RDII in southern Ontario and allocating additional resources to help businesses seize new defence opportunities and strengthen Canada’s industrial capacity.
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Incorporated in 1992, XL Tool Inc. is a Kitchener-based advanced manufacturing company specializing in the design and production of custom tooling, metal stamping dies, precision machining, fabrications, and components for industries including automotive, nuclear, oil and gas, and other industrial sectors.
Associated links
Contacts
Leela Polushin
Press Secretary
Office of the Minister of Artificial Intelligence and Digital Innovation and Minister responsible for the Federal Economic Development Agency for Southern Ontario
leela.polushin@ised-isde.gc.ca
343-543-5391
FedDev Ontario Media Relations
media@feddevontario.gc.ca
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