Linamar receives $44.5 million government grant
Canada's second largest automotive parts manufacturer, Linamar Corp., on May 12 announced a $44.5 million grant fro...
Canada’s second largest automotive parts manufacturer, Linamar Corp., on May 12 announced a $44.5 million grant from the Ontario government to build a technology centre in Guelph, Ont.
Ontario Premier Dalton McGuinty announced the investment on the heels of the annual conference of the Automotive Parts Manufacturers’ Association (APMA), which took place May 10 and 11 in Hamilton, Ont.
Expected to create about 3,000 new jobs within five years, the Linamar Technology and Training Centre will be dedicated to the research and development of automotive powertrains and chassis systems, as well as employee training.
“We have a responsibility to our employees and customers to provide the best technology, products and skills this agreement will ensure that we continue to achieve these goals long into the future,” Linda Hasenfratz, CEO of Linamar, said in a statement.
Linamar operates 22 plants around Guelph, Ont., and last year posted sales of $2.1 billion. The firm expects to increase its revenue to $10 billion by 2020.
In the first quarter of 2006 (Q1 2006), Linamar saw its sales increase by 10.2 per cent to $583.3 million compared to $529.5 million in Q1 2005.
The firm’s North American Automotive Systems division saw an increase of 5.6 per cent to $454.2 million in Q1 2006, which Linamar credited to a 4.4 per cent increase in vehicle production on the continent.
In particular, Linamar saw growth in its medium- and heavy-duty cylinder head programs, various transmission component programs, as well as engine block and cylinder heat programs for high-performance vehicle and connecting rod programs.