The Ontario Government Continues to Invest in the Province’s Auto Parts Supply Chain

Support for innovative projects will increase global competitiveness and further position Ontario as a North American EV hub

April 26, 2022

TORONTO — The Ontario government continues to invest in the province’s auto parts supply chain with another round of investments through the Ontario Automotive Modernization Program (O-AMP). The province’s more than $5.5 million additional O-AMP investment will help boost competitiveness and position Ontario as a North American hub for developing and building the cars of the future.

O-AMP is a centrepiece of Phase 2 of Ontario’s 10-year vision in the strategic plan Driving Prosperity ― The Future of Ontario’s Automotive Sector. Phase 2 of the plan demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations. Phase 2 puts Ontario on a path to becoming one of the most vertically integrated automotive jurisdictions in the emerging North American EV market.

“O-AMP plays an integral part in helping Ontario-based companies grow in a globally competitive auto parts industry,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade. “The auto and manufacturing sectors are cornerstones of Ontario’s economy, providing good jobs for local families and workers. By reducing the cost of doing business in Ontario by nearly $7 billion annually, and through programs like O-AMP, our government is creating the right economic climate to encourage investment, innovation and growth.”

Relaunched in December 2021, O-AMP is helping small- and medium-sized auto parts suppliers make Ontario a world-leader in the future of auto manufacturing. The $22 million O-AMP program will help make suppliers stronger, faster and more resilient by investing in technology adoption and/or training in Lean manufacturing. Nearly 150 projects are either underway or completed under the program, and they are expected to create more than 820 jobs.

Funding awarded since the launch of O-AMP in 2019 has leveraged more than $36.5 million in industry investments. The current round of O-AMP projects will see investments of nearly $5.52 million from 44 companies, including:

Guelph-based Poly-Nova Technologies Corporation is a custom manufacturer of specialized sealing and rubber components for automotive, industrial, life sciences, and energy applications. With $142,500 in O-AMP funding, the company will invest more than $326,000 in new manufacturing technology to expand product offerings and increase competitiveness. The project will create 15 jobs.

Cornwall-based Morbern Inc. specializes in coated fabrics and vinyl materials used in sectors including automotive, healthcare, and hospitality. With $142,500 in O-AMP funding, the company will invest more than $429,000 in advanced Industry 4.0 technologies that will monitor for production defects and deploy data analytics to enhance quality control.

“This funding will help to enhance Morbern’s quality control, ensuring their products continue to be of the highest quality, enabling them to continue their contribution to the region’s economy and job creation, while being an important manufacturer in the province’s auto sector,” said Jim McDonell, MPP for Stormont-Dundas-South Glengarry.

Windsor-based Nominal Machine Tool has a full-service Tool & Die/Machining Division, a Stamping & Assemblies Division, as well as an Automation, Robotics & Integration Division providing full 3D designs, prototyping, manufacturing, and refurbishment services for the automotive, EV and advanced manufacturing sectors. With $142,500 in O-AMP funding, the company will invest more than $307,000 in new production technologies while building upon in-house Lean manufacturing expertise to improve efficiency and competitiveness. The project will create 7 jobs.

“Technology is migrating from the car to the factory. It is no longer enough to simply make the most advanced goods. Ontario companies must make them in the most advanced factories in the world to compete,” said Flavio Volpe, President of the Auto Parts Manufacturers Association. “The O-AMP program uniquely targets that challenge, and we are proud to partner with the province to deliver it.”

Over the past 18 months, Ontario has attracted more than $12 billion in game-changing investments by Ford, ArcelorMittal Dofasco, Honda, GM and a joint venture between LG Energy Solution and automaker Stellantis to build the province’s first large-scale electric vehicle battery manufacturing plant in Windsor. More than $5 billion of these investments are in transformative hybrid and electric vehicle production at Ontario assembly plants.

These important investments, together with investments by Ontario small- and medium-sized auto parts companies through the O-AMP program, will help secure the province’s position as a competitive player in the emerging North American auto market.

Quick Facts

  • O-AMP supports manufacturing technology adoption, tools and technologies for new product development and/or adoption of lean manufacturing practices. Funding covers up to 50 per cent of eligible project costs up to $150,000, with recipient companies contributing the remainder.
  • The province’s vehicle assembly facilities are supported by a supply chain comprised of more than 700 parts firms and over 500 tool, die and mold makers.
  • Ontario has committed $56.4 million over the next four years through the Ontario Vehicle Innovation Network (OVIN) to support innovation and transformation in our auto tech system.
  • The province is home to more than 300 companies and organizations pioneering connected and autonomous vehicle technologies.
  • Ontario is the only place in North America with five major automakers building vehicles — Stellantis, Ford, General Motors, Honda and Toyota — as well as truck manufacturer Hino.

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Media Contacts

Kristin Demeny
Minister Fedeli’s Office

Kwok Wong
Communications Branch