The Ontario government has announced a $C6m investment with AGS Automotive/Tiercon, describing it as "auto strategy support" that will boost innovation and create 344 jobs over five years.

The Canadian province is home to most major automakers operating plants in the country along with some key Tier 1 suppliers such as Magna Corporation.

The money will be used to develop fully integrated bumper systems at AGS Automotive/Tiercon to help the company grow its business and create high-value jobs in Ontario's auto parts industry, minister of economic development and trade Sandra Pupatello said in a statement.

"Our support is helping AGS invest in the areas that will define the long term success of Ontario's auto industry - product innovation, leading edge and energy efficient technologies, and skills training," said Pupatello.

"Ontario has been North America's top vehicle producing jurisdiction for three years straight and we're working with the industry to keep it that way."

The project, supported under the Ontario Automotive Investment Strategy, carries a combined provincial government and company investment of $62m.

AGS Automotive and Tiercon, whose parent company is the J2 Group, will make investments in their facilities across Ontario - they currently have operations in Oshawa, Toronto, Cambridge, Windsor and Stoney Creek.

The five-year project will include research and development of advanced and fully integrated bumper systems, including high performance coatings, lightweight materials and embedded electronics; flexible manufacturing technologies; alternative energy use and waste reduction; and employee training.