The Canadian province of Ontario is investing up to 10% of the total $C154m project cost of the new Honda engine facility in Alliston.
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The money will be spent on “public infrastructure”. The new investment announced last week by the Japanese automaker creates 340 new jobs and expands the company’s presence in Ontario.
Ontario government economic development & trade minister Joe Cordiano said: “Our government has worked hard and aggressively to attract new automotive investments like this innovative Honda engine facility.
“We’re creating the best environment for our auto industry to compete with any jurisdiction around the globe. Honda’s project is the latest in an unprecedented line of new automotive investments worth more than $C7 billion for our province that have brought thousands of jobs that families can rely on for years to come.”
Added premier Dalton McGuinty: “Honda knows that Ontario’s workforce is among the most productive in the world and our Medicare system gives investors the stable business costs they’re looking for. So we will keep working to make sure Ontario remains the world’s first choice for auto manufacturing.”
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By GlobalDataThe new plant will build engines for Honda Civic models, with production beginning in 2008. The integrated engine facility will supply one of Honda’s two assembly plants with the capacity to adapt to different and more technologically advanced models in the future.
Honda Canada built its first vehicle assembly plant in Alliston in 1986, an adjacent second truck assembly facility in 1996, and in 2006 is expanding the site to make way for the new powertrain plant.
Last year Honda produced more than 385,000 vehicles at its two Alliston assembly plants, making it the third largest producer of cars and light trucks in the province. It employs 4,300 workers at Alliston and another 400 at its Scarborough headquarters.
The Ontario government has aggressively pursued new automotive projects in recent years while trying to retain exisiting jobs in the Ford, GM and Chrysler plants in the province.
Last week, Linamar announced the largest single investment by an independent auto parts maker in Canadian history. It will establish a new technology and training centre and expand its operations to create 3,000 new jobs in the Guelph area.
In April Toyotetsu Canada, a Toyota parts supplier, announced plans to bring the company’s first Canadian facility to the town of Simcoe, creating 250 jobs. In January Nemak announced a project to launch a new innovative engine block process.
