St. Thomas auto parts maker gets $2M government loan to expand: 'Huge'
An automotive parts maker in St. Thomas may be the first area supplier to tap into Ontario’s growing electric vehicle sector.
Article content
An automotive parts maker in St. Thomas may be the first area supplier to tap into Ontario’s growing electric vehicle sector.
Amino North America received a $2-million loan from the federal government to expand production that includes fenders, bumpers and, just maybe, battery compartments for EVs, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced Thursday.
“This will improve our technology so we can increase productivity,” said Trent Maki, president of the automotive parts maker on Highbury Avenue at South Edgeware Road.
“This funding allows us to put in investments needed to compete.”
The loan, announced by FedDev at the plant Thursday morning, will be used to buy equipment to install new press lines.
“We will make body panels. There may be a possibility of making battery enclosures,” for EV vehicles, Maki said. “There are discussions ongoing I can’t talk about.”
Amino, headquartered in Japan, is located west of where Volkswagen is building a $7-billion electric vehicle battery plant expected to open in 2027 with 3,000 workers.
Amino makes bumpers, body panels and roofs for automakers such as Ford, GM, Honda and truck manufacturers. It has been in St. Thomas for about 20 years and this money will fund its third expansion.
“This is huge,” Maki said. “Interest rates are high right now. Betting a loan costs a lot. A zero-interest loan is very helpful.”
The cash will support a 3,900-square-metre (42,000-square-feet) expansion and help maintain 45 jobs at the plant that employs 75.
“We have always been an industrial hotbed, now we are showing we can compete in high tech,” St. Thomas Mayor Joe Preston said. “Southern Ontario is a collective of people able to do the manufacturing needed around the world. It is great to be a modern manufacturing centre.”
In addition to Volkswagen in St. Thomas, automaker Stellantis is building a $5-billion EV plant in Windsor, and a $1.5-billion EV supplier investment is being made in Kingston while EV supplier investments also are being made in Ingersoll, Kingston, Brantford, Cambridge and Oakville.
“They have a very good problem here in that they cannot keep up with demand,” said Hamilton-area MP Filomena Tassi, the minister responsible for FedDev Ontario, who made the announcement.
“This area’s manufacturing sector is revolutionizing production . . . It is at the forefront of an exciting new chapter in the automotive sector.”
In July, FedDev gave London Economic Development Corp. $300,000 to attract EV supplier investment and support related businesses and research.
“We want to see you thrive, we want to see you do well and this expansion will help you do just that,” London North Centre Liberal MP Peter Fragiskatos said.
“The supply chain absolutely matters . . . We want to see an EV sector that thrives.”
Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.