The plant will supply trim components for the 2016 Civic built at the Honda assembly plant and create 40 jobs.
The Ontario government gave Howa a grant of more than $1 million from the Southwestern Ontario Development Fund.
The investment will support facility upgrades and specialized equipment, according to a provincial government press release. Howa has operations in Asia and the U.S., but this is the company’s first manufacturing facility in Canada.
Ontario recently gave Honda about $85 million to secure an $857 million investment in the company’s Alliston assembly operations, which have become the global lead plant for the development of the next generation of Honda Civic, the first time such a designation has been granted to a plant outside of Japan.
The Civic has been Canada’s top-selling car for the past 17 years.
Howa is based in Japan and supplies interior trim to many Japanese vehicle manufacturers, including Honda, Mitsubishi, Hino and Toyota.