- Mitsui’s 40-million dollar investment bolsters province’s auto-sector leadership, supports Climate Strategy
- High-tech motor cores to be exported to U.S. for Use in Honda, Toyota and GM vehicles
New Delhi March 22, 2016: Government of Ontario, Canada, which is fast turning into a global hub for investments due to its sophisticated R&D facilities, has now partnered with a leading industrial machinery manufacturer based in Fukuoka, Japan, Mitsui High-tec, to build the company’s first manufacturing facility in North America and the very first facility in Ontario producing motor cores for electric and hybrid vehicles.
Ontario will invest up to $2 million through the Jobs and Prosperity Fund to support Mitsui High-tec’s new facility in Brantford, leveraging an overall project investment of about $38 million. The Japanese company was also considering sites in the U.S. and Mexico but chose Ontario because of the province’s highly skilled workforce and strong auto sector.
According to Brad Duguid, Ontario’s Minister of Economic Development, Employment and Infrastructure, “Hybrid and plug-in technologies are becoming increasingly important as automakers adapt their fleets to meet more stringent fuel efficiency standards. Ontario’s investment with Mitsui Hi-tech focusses on the next generation of vehicles, pushing Ontario’s auto sector to continue leading and competing globally.”
Leading Indian companies are venturing outside the country for investing into the latest technologies in the automobile sector. For instance, India’s Tech Mahindra is piloting its Intelligent Electric Vehicle Charging technology in Niagara-on-the-Lake, Ontario. India, which is currently battling high levels of pollution, is an emerging market when it comes the clean technology sector. While Indian consumers are yet to fully embrace hybrid vehicles, India’s automotive industry is gradually making the shift in that direction. Tata Motors also recently partnered with the Mumbai Metropolitan Region Development Authority (MMRDA) for 25 hybrid electric busses. In January 2016, Delhi government had exempted hybrid vehicles during the implementation of the odd-even scheme.
Hybrid technology is currently being incorporated by leading companies like Honda, Toyota and GM in North America. With its first facility in Ontario, Mitsui High-tec now joins that league and will be producing motor cores for electric and hybrid vehicles.
According to Yasunari Mitsui, President, Mitsui High-tec Inc, “Mitsui High-tec’s new Ontario production facility—our first in North America—will build on the close working relationship we have developed with our customers on the continent. We look forward to assembling a strong team in Brantford that will exemplify the values of innovation, quality and precision manufacturing on which our company is based.”
The greenfield facility is expected to begin production in early 2017 and will feature Mitsui’s advanced manufacturing techniques to produce high-efficiency motor cores. The partnership will secure 48 new highly skilled jobs and strengthen the province’s auto supply chain.
Initially, the Ontario plant will export the motor cores for electric and hybrid vehicles to customers in the United States with longer term plans to grow the company’s market share with Ontario-based vehicle assembly plants as well.
The province is making it easier for Ontarians to switch to an electric vehicle as part of its Climate Change Strategy, which in turn is helping to foster innovation and investment in Ontario’s auto sector.
QUOTE
“As a firm celebrating 70 years of service in Ontario, McKay-Cocker Construction is proud to be part of a project that will offer construction jobs and business opportunities in Southwestern Ontario.”
— John Marcovecchio, President, McKay-Cocker Construction, a subsidiary of MC Group
QUICK FACTS
- Ontario is one of the top jurisdictions in North America for vehicle production and the only sub-national jurisdiction to have five major global automotive assemblers: Chrysler, Ford, General Motors, Honda and Toyota, as well as truck manufacturer Hino.
- The auto industry contributes around $16 billion annually to Ontario’s GDP.
The Jobs and Prosperity Fund is providing $2.7 billion over 10 years to enhance productivity, bolster innovation and grow Ontario’s exports.
- Ontario’s five-year, $400-million Business Growth Initiative is helping to grow the economy and create jobs by promoting an innovation-based economy, helping small companies scale-up and modernizing regulations for businesses.
- As part of the Business Growth Initiative, Ontario announced the Automotive Supplier Competitiveness Program to help smaller auto parts companies adopt the latest technologies, plus support for the Canadian Urban Transit Research and Innovation Consortium to support R&D and commercialization of technologies.