Auto part manufacturers getting more than $5.5 million to strengthen supply chain
Queen’s Park is investing in the province’s auto parts supply chain with another round of investments through the Ontario Automotive Modernization Program (O-AMP).
The province’s more than $5.5 million additional O-AMP investment is expected to boost competitiveness and position Ontario as a North American hub for developing and building the cars of the future.
“O-AMP plays an integral part in helping Ontario-based companies grow in a globally competitive auto parts industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The auto and manufacturing sectors are cornerstones of Ontario’s economy, providing good jobs for local families and workers. By reducing the cost of doing business in Ontario by nearly $7 billion annually, and through programs like O-AMP, our government is creating the right economic climate to encourage investment, innovation and growth.”
O-AMP is a centrepiece of Phase 2 of Ontario’s 10-year vision in the strategic plan Driving Prosperity ― The Future of Ontario’s Automotive Sector. Phase 2 of the plan demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations. Phase 2 puts Ontario on a path to becoming one of the most vertically integrated automotive jurisdictions in the emerging North American EV market.
Relaunched in December 2021, O-AMP is helping small- and medium-sized auto parts suppliers make Ontario a world-leader in the future of auto manufacturing. The $22 million O-AMP program will help make suppliers stronger, faster and more resilient by investing in technology adoption and/or training in Lean manufacturing. Nearly 150 projects are either underway or completed under the program, and they are expected to create more than 820 jobs.
Funding awarded since the launch of O-AMP in 2019 has leveraged more than $36.5 million in industry investments. The current round of O-AMP projects will see investments of nearly $5.52 million from 44 companies, including:
- Guelph-based Poly-Nova Technologies Corporation is a custom manufacturer of specialized sealing and rubber components for automotive, industrial, life sciences, and energy applications. With $142,500 in O-AMP funding, the company will invest more than $326,000 in new manufacturing technology to expand product offerings and increase competitiveness. The project will create 15 jobs.
- Cornwall-based Morbern Inc. specializes in coated fabrics and vinyl materials used in sectors including automotive, healthcare, and hospitality. With $142,500 in O-AMP funding, the company will invest more than $429,000 in advanced Industry 4.0 technologies that will monitor for production defects and deploy data analytics to enhance quality control.
“This funding will help to enhance Morbern’s quality control, ensuring their products continue to be of the highest quality, enabling them to continue their contribution to the region’s economy and job creation, while being an important manufacturer in the province’s auto sector,” said Jim McDonell, MPP for Stormont-Dundas-South Glengarry.
- Windsor-based Nominal Machine Tool has a full-service Tool & Die/Machining Division, a Stamping & Assemblies Division, as well as an Automation, Robotics & Integration Division providing full 3D designs, prototyping, manufacturing, and refurbishment services for the automotive, EV and advanced manufacturing sectors. With $142,500 in O-AMP funding, the company will invest more than $307,000 in new production technologies while building upon in-house Lean manufacturing expertise to improve efficiency and competitiveness. The project will create 7 jobs.
“Technology is migrating from the car to the factory. It is no longer enough to simply make the most advanced goods. Ontario companies must make them in the most advanced factories in the world to compete,” said Flavio Volpe, President of the Auto Parts Manufacturers Association. “The O-AMP program uniquely targets that challenge, and we are proud to partner with the province to deliver it.”
Over the past 18 months, Ontario has attracted more than $12 billion in investments by Ford, ArcelorMittal Dofasco, Honda, GM and a joint venture between LG Energy Solution and automaker Stellantis to build the province’s first large-scale electric vehicle battery manufacturing plant in Windsor. More than $5 billion of these investments are in transformative hybrid and electric vehicle production at Ontario assembly plants.