Canadian Manufacturing

Nemak gets $1.5M from province for Windsor, Ont., expansion

Nemak will use grant to increase production capacity of aluminum engine blocks it sells to Shanghai General Motors



WINDSOR, Ont.—Ontario’s Liberal government is providing a $1.5-million grant to auto parts manufacturer Nemak of Canada Corp. to expand operations and create 80 new jobs in Windsor, Ont., over the next four years.

Nemak will use the grant to increase production capacity of aluminum engine blocks that it sells to Shanghai General Motors Co. Ltd. (Shanghai GM) of China, which will help preserve the 200 existing jobs at its Windsor operations.

The grant for Nemak, a subsidiary of Tenedora Nemak SA de CV of Mexico, will come from the Southwestern Ontario Development Fund, which is used to encourage regional businesses to pursue innovation and new markets.

Finance Minister Charles Sousa says providing financial support for expansions like Nemak’s are important opportunities for the province, and will help increase the company’s global competitiveness.

The province recently provided a $50-million grant to another auto parts manufacturer, Linamar Corp., for a $500-million expansion of its manufacturing operations in Guelph, Ont., with a promise to create 1,200 new jobs over 10 years.

Ontario also provided a grant of nearly $86 million to help Honda with an $857-million modernization of its car plant in Alliston, Ont., over the next three years.

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