Ontario supports $27 million surge in Southwestern Ontario economy with $1 million Regional Development Program investment
TILLSONBURG – The Ontario government is supporting a $27 million investment by Oxford County auto parts manufacturer THK Rhythm Automotive Canada Limited to help strengthen Ontario’s automotive and domestic manufacturing sectors, while attracting investment to the local economy.
THK Rhythm Automotive Canada will invest $27 million to purchase advanced manufacturing equipment, including automated machining and assembly centres to manufacture steering and linkage components. With $1 million from the Southwestern Ontario Development Fund, the company will create about 100 new jobs. Through this project, THK Canada will also expand its Tillsonburg plant by about 13,000 square feet to provide the necessary space to improve the flow of material throughout the production process, in turn reducing costs.
“Through the Regional Development Program, our government is making targeted investments in local manufacturers to help them create good, local jobs,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “We thank THK Canada for contributing to our province’s vibrant, innovative, and growing automotive sector. Investments like this one play a pivotal role in Phase 2 of our Driving Prosperity auto plan. And they are making a significant impact on the Oxford County regional economy by investing in Ontario’s talented workforce and creating the conditions for long-term economic growth.”
“The grant funding received will be used to support the technology investment that THK is making in our Ontario manufacturing facilities,” said John W. Cummings, North American Operations Director for THK Rhythm Automotive. “This includes the installation of state-of-the-art machining and assembly centres which will be required to launch the new automotive business that has been awarded to THK. These investments will allow us to remain a leader in the design and manufacturing of automotive linkage and suspension components, creating about 100 new jobs in our Ontario facilities.”
“I’m pleased to see this vital support for investment in Oxford’s automotive industry,” said Ernie Hardeman, MPP for Oxford. “This project will make a significant impact in our community and is an important part of strengthening our local economy.”
Ontario is investing more than $100 million through the Regional Development Program from 2019 to 2023 to support distinct regional priorities and challenges. The program provides cost-shared funding to businesses, municipalities, and economic development organizations to help local communities attract investment, diversify their economies, and create jobs.
On November 17, the government released Phase 2 of Driving Prosperity ― The Future of Ontario’s Automotive Sector. The next phase of the 10-year plan will help Ontario’s auto sector pivot to producing the automotive technologies of the future, including the next generation of electric vehicles and the electric batteries those vehicles need. Phase 2 positions Ontario as a North American leader in developing and building the vehicle of the future through emerging technologies and advanced manufacturing processes.
Quick Facts
- The government launched the Regional Development Program for Eastern and Southwestern Ontario in November 2019. Businesses and municipalities can get financial support through the Eastern Ontario Development Fund (EODF) and Southwestern Ontario Development Fund (SWODF) and guided access to a range of complementary services and supports.
- The government announced Driving Prosperity ― The Future of Ontario’s Automotive Sector in February 2019. The 10-year plan lay the foundation for the future of the province’s auto sector, its workers, and the families and communities it supports.
- Vehicle assembly and auto parts production directly supports more than 92,000 Ontario jobs, with hundreds of thousands more spin-off jobs in communities across the province.
- The province’s vehicle assembly facilities are supported by a supply chain comprising over 700 parts firms and over 500 tool, die, and mold makers.
Source Province of Ontario
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