Canadian Plastics

O-AMP invests another $5.5 million in automotive supply chain

The $22-million O-AMP program is designed to help make suppliers stronger, faster, and more resilient by investing in technology adoption and/or training in Lean manufacturing.

April 27, 2022   Canadian Plastics

The Ontario government announced plans to invest in the province’s auto parts supply chain with a round of investments through the Ontario Automotive Modernization Program (O-AMP). The province’s more than $5.5 million additional O-AMP investment will try to 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 strategic plan called “Driving Prosperity ― The Future of Ontario’s Automotive Sector”.

“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 aims to help small- and medium-sized auto parts suppliers in Ontario; the $22 million O-AMP program will try and 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.

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The current round of O-AMP projects will see investments of nearly $5.52 million from 44 companies, including:

  • Guelph-based Poly-Nova Technologies Corp., which 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.
  • Windsor-based Nominal Machine Tool has a full-service tool and die/machining division, a stamping and assemblies division, as well as an automation, robotics and 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 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 hybrid and electric vehicle production at Ontario assembly plants.