Canada’s second-largest automotive manufacturing company, Linamar, is an internationally recognized corporation with 59 plants throughout North America, Asia, and Europe. Linamar provides a significant benefit to southern Ontario’s economy, employing over 25,000 workers and generating more than $6 billion in annual sales.
These capital investment grants from the federal and provincial governments will allow Linamar to introduce an Innovation Centre dedicated to research and development to advance the company’s work in areas such as artificial intelligence. It will also support the manufacturing of next-generation transmission and drivetrain components and systems, and create up to 1,500 jobs while retaining about 8,000 others in Ontario.
Linamar Awarded Government Funding for Research and Development
Linamar is a manufacturer of high-precision machined and assembled components for the automotive, energy, agricultural, and transportation sectors. They are one of Canada’s leading industrial companies and are well-established in export markets including the United States, where they have a significant presence.
Two government funding programs aimed at accelerating large-scale investments in innovative facilities and products recently named Linamar as a funding recipient. The support of the Jobs and Prosperity Fund (JPF) and the Strategic Innovation Fund (SIF) will complement Linamar’s own investment and build a new Guelph, Ontario-based Innovation Centre focusing on artificial intelligence, machine learning, collaborative robotics, and lightweight components.
Linamar will leverage a combined total of $99M in government funding through the Jobs and Prosperity Fund and the Strategic Innovation Fund.
The new Innovation Centre will support Linamar’s innovative research and development projects and provide dedicated space to design and develop next-generation transmissions, drivetrains, high-efficiency engine parts, and electric/connected vehicle technologies.
“Innovation is the single most important thing we can do in terms of both product design, process design, and material development to solve global problems and create opportunities for us all to succeed.”
– Linda Hasenfratz, CEO, Linamar Corporation
Ontario Government Funding Programs for Business Expansion and Innovation
To offset a portion its Innovation Centre project costs, Linamar will use two government funding programs: the provincial Jobs and Prosperity Fund (JPF) and the federal Strategic Innovation Fund (SIF). This is a process known as “stacking,” whereby a provincial and a federal government funding program are used together to optimize the support a project may receive.
To learn more about how stacking can improve a project’s total funding contributions, please read Mentor Works’ guide on stacking government funding programs.
Jobs and Prosperity Fund (JPF) Ontario Government Funding
The Jobs and Prosperity Fund is an Ontario business funding program that supports large scale capital investment to enhance a company’s capabilities and international competitiveness. JPF funding offers a combination of grants and loans to help participants improve productivity, demonstrate innovation and create sustainable jobs.
Jobs and Prosperity Fund contributions support up to 10-15% of eligible project costs with no maximum amount of funding that can be awarded per project.
Eligible companies must be incorporated for a minimum of three years, be ready to commit to a large-scale capital investment project, and must use projects to boost productivity and create new high-quality jobs.
Strategic Innovation Fund (SIF) Canadian Government Funding
The Strategic Innovation Fund is a Canadian government funding program that helps businesses invest in innovative products, services, and processes. Recently expanded through Budget 2018, the program has been given new resources to stimulate research and development projects with significant expenses.
SIF offers repayable and non-repayable financial contributions of up to 50% of eligible project expenses. The program requires a minimum $20M in eligible project expenses to qualify for funding.
Companies well-suited for the Strategic Innovation Fund must be incorporated, have high growth potential, and maintain the ability to drive innovation in next-generation technologies. Potential applicants with highly innovative projects are encouraged to apply for funding throughout the year, as the program accepts applications on a continuous basis.
To learn more about automotive manufacturing projects that can receive government funding support, please download the free Top Trends in the Canadian Automotive Sector white paper.
This post originally appeared on Mentor Works. Mentor Works helps established for-profit companies find and leverage Canadian business grants and loans.