Canada's Economic Action Plan

Canada's Economic Action Plan

August 17, 2012 13:30 ET

Government of Canada Supports Business Growth in Barrie

BARRIE, ONTARIO--(Marketwire - Aug. 17, 2012) - A new investment from the Government of Canada will allow Southmedic Inc. to automate key aspects of its medical device production, and will create 18 new jobs in the Barrie area. Patrick Brown, Member of Parliament for Barrie, on behalf of the Honourable Gary Goodyear, Minister of State for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced the investment today alongside representatives of the company.

"Our Government's top priority is jobs, growth and long-term prosperity for all Canadians," said MP Brown. "Investments such as this one demonstrate our Government's commitment to helping businesses in southern Ontario become more innovative, productive and competitive in the global market."

This $900,000 investment is being provided through FedDev Ontario's Prosperity Initiative, which aims to encourage businesses, not-for-profit organizations and post-secondary institutions in southern Ontario to undertake projects that will result in a more productive, diversified and competitive economy in the region.

Southmedic will use the investment to automate the assembly process of its patented OxyMask. This automation will allow Southmedic to integrate into its Barrie facilities various finishing processes (such as painting) that are currently being outsourced, while more than doubling the production capacity of the mask. The company will also be able to centralize scalpel blade manufacturing processes. These enhancements will allow Southmedic to better meet the needs of export customers and supply chain demands, and to stay globally competitive in the medical device field.

"We have already begun to put FedDev Ontario's investment to work by automating our OxyMask line, functioning in our plant today with extremely encouraging results," said Lee McDonald, Founder and Chief Executive Officer of Southmedic Inc. "In addition, we're looking forward to this investment helping us implement equipment-currently on order-which will further augment automation, while replacing blades purchased elsewhere with manufacturing here in Barrie."

For more information on this project and the Prosperity Initiative, please see the backgrounder.

Created in 2009, FedDev Ontario supports the southern Ontario economy by building on the region's strengths and creating opportunities for jobs and economic growth. The Agency has launched a number of initiatives to create a Southern Ontario Advantage and place the region in a strong position to compete in the global economy. These initiatives are designed to encourage partnerships and support projects that help the region's businesses and communities become more competitive, innovative and diversified. To learn more, please visit or call 1-866-593-5505.

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Contribution to Southmedic Inc.

FedDev Ontario is providing Southmedic Inc. with a repayable contribution of up to $900,000 through its Prosperity Initiative. Established in 1983, Southmedic Inc. is a manufacturer and distributor of custom and proprietary medical devices. Located in Barrie, the company produces a range of devices such as oxygen masks and scalpels, and owns over 50 patents worldwide.

This contribution will allow Southmedic Inc. to adopt new technology that will automate its oxygen mask assembly process. This will allow Southmedic to introduce long-term efficiencies in the production method, and increase manufacturing capacity by 2.75 million units annually. The company will be able to centralize scalpel blade manufacturing processes as well.

As a result, Southmedic anticipates creating 18 new jobs, meeting the current and anticipated needs of their customers and improving supply chain efficiency, increasing productivity and building a competitive advantage for southern Ontario's medical device manufacturing cluster in global markets.

For more information, please visit

Prosperity Initiative

FedDev Ontario's Prosperity Initiative is designed to encourage businesses, not-for-profit organizations and post-secondary institutions in southern Ontario to undertake projects that will result in a more productive, diversified and competitive economy in the region.

Funding is available for projects that:

  • enhance productivity, by accelerating the adoption of new technologies, processes and skills to enhance businesses and sectors in southern Ontario to achieve higher output in relation to their investments;
  • diversify the regional economy, by increasing the number of new industries or opportunities in southern Ontario communities or regions with the potential to have long-term impacts on their economic diversity; and
  • build a competitive advantage for southern Ontario, by building on the assets and strengths of southern Ontario businesses and regions to create or expand economic clusters and enhance their global competitiveness.

Applications for funding are being accepted and assessed on an ongoing basis. For more information and to apply, please refer to the Program Guidelines available on the website at

Contact Information

  • Michele-Jamali Paquette
    Director of Communications
    Office of the Honourable Gary Goodyear

    Media Relations
    FedDev Ontario