The Canadian province of Ontario is funding Ontario Drive & Gear's New Hamburg plant upgrade and expansion which will create 35 new jobs and retain 117 positions over four years. The supplier designs and manufactures custom gears and transmissions for the automotive and energy sectors and its customers include Magna, Ford and Allison Transmission.
The province is providing C$1.5m from its Southwestern Ontario Development Fund, enabling the company to expand and purchase new equipment to meet growing demand for its products.
In a statement, the province said the Southwestern Ontario Development Fund, modeled on the proven Eastern Ontario Development Fund, "is helping to create jobs and diversify the economy by encouraging regional businesses to pursue innovation and new markets. Together, these two funds have created and retained more than 37,000 jobs and attracted more than $1.5bn in investment".
"Our government is pleased to partner with Ontario Drive & Gear to expand their business and enhance the competitiveness of their facility. This investment will generate economic activity and ensure the company remains a significant economic driver and employer in the Kitchener area," said Brad Duguid, the minister of economic development, employment and infrastructure
Ontario Drive & Gear was founded in 1962.