CHATHAM, Ontario, May 16, 2005 -- The Honourable Joe Fontana, Minister of Labour and Housing, with the Honourable Jerry Pickard, Parliamentary Secretary to the Minister of Industry, on behalf of the Honourable David L. Emerson, Minister of Industry, today announced that the Government of Canada, through Technology Partnerships Canada, would participate in a project bringing together the Government of Ontario and International Truck and Engine Corporation Canada in a $270-million initiative to foster both advanced manufacturing and environmental technologies in the production of premium conventional heavy-duty trucks. In support of this project, the federal government is announcing today its intention to conclude an agreement with International Truck and Engine Corporation Canada for a $30-million investment over several years. Treasury Board approval will be sought shortly for the implementation of this initiative. "Our investment in International Truck and Engine Corporation Canada's premium conventional heavy-duty truck project clearly shows the Government of Canada's commitment to the automotive industry -- an important sector of our economy," said Minister Emerson. "The fact that environmental technologies play a large part in this initiative is equally important--it is a clear demonstration of our continued support for sustainable development." "This project is the perfect example of industry and government working together to make sure that Canadians benefit from high-quality jobs and a stronger economy," added Joe Fontana. "By investing in such innovative technologies, we are supporting Canada's competitiveness in the 21st century." "By strengthening the research and development (R&D) and production capabilities of International Truck and Engine Corporation Canada's Chatham facility, this investment positions Chatham as a leading-edge truck manufacturing centre," said Jerry Pickard. "It also helps Canada develop a strong capability in transportation equipment manufacturing." International Truck and Engine Corporation Canada, an operating company of Navistar International Corporation, is a leading producer of commercial trucks, and mid-range diesel engines. This project will allow International Truck and Engine Corporation Canada to evaluate and develop innovative solutions for integration and assembly issues in the manufacture of premium conventional heavy-duty trucks. In addition, the company will perform R&D on new diesel emission control technology, develop new paint processes, explore advanced manufacturing concepts, and develop new manufacturing tools and processes. Technology Partnerships Canada (TPC) is a key instrument for advancing research and development toward commercialization. Working in partnership with innovative companies across Canada, TPC shares in the cost of private sector technology projects in aerospace and defence, in environmental technologies, and in enabling technologies such as information and communications technologies, biotechnology, and advanced manufacturing technologies. For more information, please contact: Christiane Fox Office of the Honourable David L. Emerson Minister of Industry (613) 995-9001 Media Relations Industry Canada (613) 943-2502 The news release, backgrounder and other documents are available on the Technology Partnerships Canada website at http://www.tpc-ptc.ic.gc.ca -----------------------------------------> Backgrounder Government of Canada Supports Development of Advanced Transportation Equipment Manufacturing and Environmental Technologies The Government of Canada has agreed to partner with the Government of Ontario and with International Truck and Engine Corporation Canada (ITECC) in a project to develop new technologies for the production of premium conventional heavy-duty trucks, which are generally class 8, long-haul highway vehicles. In support of this project, the federal government is announcing today its intention to conclude an agreement with ITECC for a $30-million investment over several years. Treasury Board approval will be sought shortly for the implementation of this initiative. In an effort to increase efficiency and environmental benefits, the project will evaluate and develop innovative manufacturing technologies and new production methods, such as diesel emission control technology and state-of-the-art paint processes. ITECC will develop automated installation systems for cab trim, and enhanced laser technology and vision systems to ensure precise positioning of the cab during the assembly process. This will result in more efficient assembly of components, increased reliability, improved ergonomics and higher productivity. The project will also develop and integrate higher levels of information technology into the production environment. Radio frequency monitors in trucks on the production line will provide real-time status reports, improve monitoring of components and sub-systems as they are installed, and ensure the proper matching of components. The project supports 60 jobs during the research and development phase and will create or maintain 500 jobs during the benefits phase -- the point where innovations from the project will be applied to company operations. The project will also significantly increase the skill level of the company's employees. Ninety-one percent of the work supported by the TPC investment will be undertaken at the Chatham location, with the remainder in Windsor. International Truck and Engine Corporation Canada, of Burlington, Ontario, is a wholly owned subsidiary of International Truck and Engine Corporation, of Warrenville, Illinois, which is owned by Navistar International Corporation. In addition to heavy trucks, International Truck and Engine Corporation is a leading producer of mid-range diesel engines, medium trucks and school buses. International Truck and Engine Corporation's manufacturing history in Chatham dates back to 1922 when the Chatham Wagon Works began producing trucks for the company. ITECC employs over 800 people in Canada and manufactures up to 110 trucks per day at the Chatham plant.
