Government of Canada supports growth in Quebec's automotive industry

MONTREAL, QUEBEC--(Marketwired - Jan. 10, 2017) - Canada Economic Development for Quebec Regions (CED)

The Government of Canada recognizes that the automotive industry is constantly evolving, and in order to compete in this market, businesses have to innovate by developing new processes, new products and new technologies. The design and adoption of leading-edge technology paves the way for the future and introduces new skills to be adopted by autoworkers. These two factors-leading-edge technology and a highly skilled workforce-will enable the Canadian automotive industry to stay competitive in the global environment.

The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED, announced that $2,476,500 in financial assistance has been granted to five Quebec enterprises in the automotive industry.

The funding allocated by CED to Polyrix Inc., Verbom Inc., Conception Génik Inc., Fibrotek Advanced Materials Inc. and Autodip, will be used to increase the productivity and production capacity of the enterprises through the acquisition of equipment or the implementation of a commercialization strategy for new products.

The Quebec automotive industry is the second largest in Canada and is made up of manufacturers of automotive parts, recreational vehicles, heavy-duty vehicles, buses and specialty vehicles. In 2015, the Quebec industry employed 7,400 workers, generated $4 billion in sales and exported over $3.1 billion in motor vehicles and related products, with 32% of those exports consisting of motor vehicle parts. Moreover, Quebec has developed expertise in electrification and in light electric transportation. It is currently a leader in artificial intelligence (AI) and photonic optics, two areas that support the development of automated and connected vehicles.

Quote

"The Government of Canada's support for these five enterprises reflects our commitment to stimulating economic growth in order to create a prosperous country for all. In the short and medium terms, these investments will generate quality jobs, better opportunities and a higher standard of living for all Canadians. They will help our industry remain competitive and ensure that the manufacturing jobs held by the middle class stay in Canada."

The Honourable Navdeep Bains, Minister responsible for CED

CED is one of the six regional development agencies under the responsibility of the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development.

Related document

For more information about the five projects, see the related backgrounder.

Related links

For more information about the QEDP: http://www.dec-ced.gc.ca/eng/agency/programs/qedp/index.html

Polyrix Inc. website: www.polyrix.com

Verbom Inc. website: www.verbom.com

Conception Génik Inc. website: www.genikinc.com

Fibrotek Advanced Materials Inc. website: www.fibrotek.com

Autodip website: www.autodip.com

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Backgrounder

Government of Canada supports growth of Quebec's automotive industry

The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development and Minister responsible for CED, was at the North American International Auto Show and took the opportunity to announce that five Quebec enterprises in the automotive industry will share $2,476,500 in financial contributions. Granted under the Quebec Economic Development Program (QEDP), the funding will be used to increase productivity and production capacity of recipient businesses through the acquisition of equipment or the implementation of commercialization strategies.

Proponent		Contribution - Investment - Project description
Polyrix Inc. http://www.polyrix.com/		$146,500 repayable contribution out of a total investment of $293,000 Polyrix specializes in industrial scanning technology. The Québec City enterprise recently developed the PolyScan, a 3D 360° scanner for the inspection and quality control of manufactured parts. Combining inspection speed, reliability and simplicity of use, the tool intercepts non-compliant or defective parts before their end-use in a final product (car, computer, robot, medical equipment, etc.). CED's financial assistance will help Polyrix grow through the commercialization of 3D scanners in the North American automotive industry. The project is expected to create four jobs.
Verbom Inc. http://www.verbom.com/		$1,200,000 repayable contribution out of a total investment of $7,710,156 Verbom specializes in the design and manufacture of metal stamping tools and, more recently, the production of metal parts. The business has 225 employees and has developed a unique new aluminum-forming technology: HSBF (High Speed Blow Forming). CED's financial assistance will help Verbom increase the production capacity of its plants in Valcourt and Sherbrooke. The project is expected to create 25 jobs.
Conception Génik Inc. http://www.genikinc.com/		$600,000 repayable contribution out of a total investment of $1,200,000 Conception Génik Inc. has been an equipment supplier for the automotive industry for nearly 25 years. The enterprise specializes in the design and manufacture of automated assembly equipment. CED's financial assistance will help the business increase its production capacity through the acquisition of equipment and the expansion of its StStSJérôme plant. The project is expected to create 30 jobs.
Fibrotek Advanced Materials Inc. http://www.fibrotek.com/		$430,000 repayable contribution out of a total investment of $978,000 Located in Clermont, Fibrotek manufactures composite parts and aluminum assembly jigs. It also provides precision machining, prototyping, engineering and design services. As part of a value chain, the business has numerous original equipment manufacturers and their direct subcontractors as clients, mostly in the automotive and aerospace industries. CED's financial assistance will help Fibrotek support its growth by hiring a consultant and acquiring a new machining centre. Once completed, the project is expected to create 89 jobs.
Autodip http://www.autodip.com/		$100,000 repayable contribution out of a total investment of $250,000 Autodip is a small Québec City business specializing in the development of automobile vinyl wrap products that protect car paint against abrasions, salt, scratches, etc. CED's financial assistance will help Autodip carry out a set of commercialization activities to reach their customers in the American, Mexican and Australian markets. The project is expected to create one job.

Summary

Total number of projects:	5
CED contributions:	$2,476,500
Investments generated by these projects:	$10,431,156
Jobs created:	149