Aisin Canada Secures $2.2 Million to Expand Production in Stratford

Aisin Canada, a prominent auto parts manufacturer, has received a substantial funding boost of $2.2 million from the Ontario Together Trade Fund. This announcement was made by Matthew Rae, the Member of Provincial Parliament for Perth-Wellington, on the morning of March 15, 2024. The investment is aimed at enhancing the company’s operations in Stratford, where it supplies parts to Toyota plants in Woodstock and Cambridge.

The funding is part of a larger $120 million initiative designed to counter tariffs that have impacted Ontario manufacturers. According to Rae, this support will not only protect 530 jobs but also create an additional 30 positions at Aisin’s Wright Boulevard facility. The funds will assist in the acquisition of equipment necessary for the production of panoramic sunroofs for the Toyota Lexus NX, with production expected to commence in December 2024.

Wayne Robert, president of Aisin Canada Inc., described the provincial funding as a significant contribution to the company’s investment strategy. “It’s a good chunk of our investment,” Robert stated, emphasizing that it equates to approximately $2 per part in terms of depreciation. He acknowledged that the current sunroof line at the Stratford plant is being phased out, which raised concerns about potential layoffs.

“We’ve never actually had a layoff in our 23 years in Canada,” Robert noted. “Our growth model has allowed us to manage turnover without layoffs.” The company typically allows natural turnover to occur without immediate replacement, maintaining its workforce stability over the years.

Despite this stability, Aisin has faced challenges due to tariffs imposed by the United States. In the first half of 2023, the company incurred approximately $1.7 million in duties. To mitigate these costs, Aisin shifted its shipping routes, now sending goods to its Stratford facility via Vancouver instead of through the U.S. Robert pointed out that without this change, the company could have faced tariffs of up to $4 million.

Stratford’s Mayor, Martin Ritsma, underscored the critical role Aisin plays in the local economy, which remains heavily reliant on manufacturing. He stated that manufacturing accounts for about 65 percent of Stratford’s economy, with automotive-related industries making up 85 percent of that sector. “Aisin is one of our leaders,” Ritsma affirmed, highlighting the company’s significance to the community.

The funding announcement follows a troubling trend in the manufacturing sector, exemplified by the recent announcement from Algoma Steel, which revealed plans to lay off 1,000 employees following the closure of its Sault Ste. Marie plant. This decision came despite Algoma receiving substantial loans of $400 million from the federal government and $100 million from the province.

In response to concerns about job security in the manufacturing sector, Rae acknowledged the prevailing apprehension stemming from the ongoing trade tensions with the U.S. He reassured that the Ontario government, through the Ontario Together Fund and other initiatives, is committed to supporting businesses facing trade-related challenges. “Our government will be there to support those businesses,” Rae emphasized, reaffirming the province’s dedication to protecting jobs in the face of trade disputes.