Backgrounder: Over $22 million in Government of Canada support for six projects in southern Ontario’s aerospace sector

From: Federal Economic Development Agency for Southern Ontario


Today, while visiting the Region of Waterloo International Airport, the Honourable Filomena Tassi, Minister responsible for the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), along with Tim Louis, Member of Parliament for Kitchener-Conestoga and Valerie Bradford, Member of Parliament for Kitchener-South Hespeler, announced a total investment of over $22 million, through the Aerospace Regional Recovery Initiative (ARRI), for six projects to increase manufacturing and productivity, green operations, and train the workforce of the future, within southern Ontario’s aerospace sector.

This consists of support for the following projects:

Cleeve Technology Inc. is an Oshawa-based manufacturer of electrical interconnect solutions for aerospace applications. The company is receiving a repayable contribution of $2.5 million to construct additional manufacturing space and purchase new machinery, molding tools, and upgraded IT infrastructure. As a result, the company will increase its manufacturing capability, improve productivity, create 20 new jobs and maintain 10 jobs.

“After 25 years of successful business and growth in the Canadian aerospace sector, Cleeve was not immune to the negative impacts of the COVID-19 pandemic. This support from FedDev Ontario allows us to bounce right back and to invest in future opportunities and growth.”
Paul Church, President, Cleeve Technology Inc.

First Nations Technical Institute (FNTI) is a Indigenous-owned and governed post-secondary institute in in Tyendinaga Mohawk Territory, which offers training programs in many disciplines, including aerospace and an advanced aviation program. The organization is receiving a non-repayable contribution of over $3.5 million to install a solar power system, which has capabilities to produce renewable energy and battery storage. As a result, the organization will turn its existing and proposed new campus building into a net-zero facility while prioritizing the contracting Indigenous staff and suppliers.

“Students come from across Canada and Ontario to attend FNTI, the only Indigenous post-secondary pilot training program of its kind in Canada. Generating renewable energy in our airfield aligns with Indigenous values and our commitment to sustainable practices and we are thrilled to partner with FedDev Ontario contribute to climate mitigation for the benefit of future generations.”
Suzanne Brant, President, First Nations Technical Institute

Service Mold + Aerospace Inc. is a Windsor-based build-to-print manufacturing supplier that produces structural parts and flight hardware for aerospace, space exploration, automotive, and commercial sectors. The company is receiving a repayable investment of over $3.8 million to purchase four pieces of Computer Numerical Control equipment. As a result, the company will reduce lead times, increase production, commercialize new parts, attract new customers, expand its market share in the rocket supply chain, and increase and diversify its revenue while creating 15 new jobs and maintaining 27 jobs.

“‘With Space exploration reaching unprecedented levels, this FedDev Ontario support will allow Service Mold + Aerospace to invest in state-of-the-art CNC equipment and increase manufacturing capacity to meet the industry’s demands. Furthermore, this investment would allow us to continue to hire, train, and retain highly skilled tradespeople, allowing an Ontario business to remain competitive in the industry and ensuring the longevity of our shared success.”
Myles Schuurman, Vice President, Service Mold + Aerospace Inc.

Shimco North America (Shimco) is a Cambridge-based, full service custom shim and small-part aerospace manufacturer. The company is receiving a repayable investment of nearly $1.2 million to construct a 20,000-square foot addition to its manufacturing space and purchase new advanced equipment. As a result of this investment, the company will be able to improve productivity and reduce its environmental footprint by increasing their production capacity and installing new efficient machinery, while creating 24 new jobs and maintaining an additional 36 jobs.

“We were extremely pleased to have been approved for this support under the ARRI program. The funding will allow Shimco to remain competitive on the international contracts it competes for and will support Shimco on its path in becoming one of the world leaders in the markets it serves”
Peter Voss, CEO, Shimco North America

The Waterloo Institute for Sustainable Aeronautics (WISA), is Canada’s first sustainable aeronautics institute housed within the University of Waterloo. Through the support of four distinct projects and a non-repayable investment of nearly $9.2 million, WISA will expand its ability to support the southern Ontario aerospace sector by equipping an Innovation Hub at the Waterloo Region Airport to mobilize research, access green technologies and provide hands-on aviation training, support up to 39 research projects to solve sector-specific challenges, deliver support for up to 12 SMEs to commercialize products focused on aeronautical sustainability and develop two aeronautical sustainable e-learning courses. This project is expected to support over 65 jobs and up to 30 SMEs in the Waterloo Region.

“I believe in a future where every flight we take is socially, economically and environmentally sustainable. Today’s federal announcement is a vote of confidence that the Waterloo Institute for Sustainable Aeronautics will make that future possible. This support will activate the transdisciplinary research and teaching needed to reduce emissions and prepare aviation professionals to transform this vital sector.”
Dr. Vivek Goel, President and Vice-Chancellor, University of Waterloo

“WISA — the first institute of its kind in Canada — can play a vital role in achieving sustainability in the aviation and aerospace industries. Launched in the fall of 2021, its mission is to become the world’s leading hub for research, technology and education that will build a sustainable future for the aviation, aerospace and space industries. We have all the pieces here. If you love aviation, sustainability and new technology, come to Waterloo.”
Dr. Suzanne Kearns, Associate Professor of Aviation, Founder and Director of the Waterloo Institute of Sustainable Aeronautics, University of Waterloo

World Trade Centre Toronto is the trade services arm of the Toronto Region Board of Trade that provides targeted international trade advisory services and expertise through comprehensive research, trade education, strategy building workshops, outbound and inbound trade missions and valuable connections to experts and networks and its various business facing programs. The organization is receiving a non-repayable investment of over $1.7 million to offer aerospace specific cohorts of its successful business development programs, including the recently launched Growth Development Program. This investment will support up to 145 SMEs in the aerospace sector green operations, pursue new export opportunities, grow business, and embrace digitization, and create 217 indirect jobs.

“The Canadian aerospace industry is a significant national economic driver and is projected to grow substantially over the next decade. The Government of Canada’s support for this critical initiative will help strengthen Canada’s scale-up ecosystem, diversify our domestic supply chain, and to strengthen Canada’s domestic aerospace supplier base in a fiercely competitive, increasingly technology driven sector. We are excited to help ambitious SMEs innovate and build sustainable growth strategies, both within and outside Canada.”
Giles Gherson, Executive Vice President of the Toronto Region Board of Trade and World Trade Centre – Toronto